DSM Food Specialties, a subsidiary of the Netherlands-based ingredients company Royal DSM, has completed the acquisition of oilseed processing business and licenses of certain food enzymes from Verenium, a California-based industrial biotechnology company, for $37m.

The transaction also includes Verenium’s oilseed processing enzymes, including Purifine, product candidates, and intellectual property covering these products, besides assuming its partnership agreements with Bunge, Alfa Laval and Desmet Ballestra.

Under the agreement, Verenium will develop new biodiversity libraries which can be used by DSM for identifying new product opportunities; however, the deal does not affect the existing gene libraries.

The California company granted DSM exclusive licenses to its alpha-amylase and xylanase enzyme products for use in the food and beverage markets, in addition to signing a supply agreement to manufacture the Purifine, alpha-amylase and xylanase products for DSM.

Verenium president and chief executive officer James Levine said that the deal is a further example of the substantial value industry-leading companies place on the company’s products and capabilities.

"Moving forward, Verenium remains committed to realizing the growth potential from our commercial and pipeline products, and using our proprietary technology to create new and valuable products," Levine added.

DSM believes that the new asset purchase will fortify and broaden its enzymes business and capabilities, while strengthening its industrial biotech activities such as oilseed processing.

The annual market growth for enzymes in the global crop-based oil market is estimated to be nearly 50% in the coming years, with the market potential expected to be over $350m.

Verenium, which develops various high-performance enzyme products for use in industrial processes, has posted total revenues of $61.3m in fiscal 2011, up 18%, compared to $52.1m in fiscal 2010.