Core Viewpoint - Teknor Apex has completed the acquisition of Danimer Scientific, Inc. for $19 million, which is a significant move in the PHA industry, especially considering Danimer's previous financial struggles and bankruptcy filing [1][4]. Group 1: Acquisition Details - Teknor Apex acquired Danimer Scientific for a cash total of $19 million, while also assuming some of Danimer's debts [4]. - Danimer Scientific, established in 2004, was known for its PHA production and had expanded its capacity significantly, including a factory in Kentucky with an annual capacity of 20 million pounds [1][3]. Group 2: Danimer's Financial Struggles - Danimer filed for bankruptcy on March 14, with total assets of $622.5 million and liabilities of $449.5 million [3]. - The company faced aggressive expansion leading to underutilization of capacity, with the Kentucky plant operating at only 60% capacity and high production costs of approximately $12,000 per ton [5]. - Key customer losses, such as Starbucks terminating a supply agreement, resulted in a significant drop in sales, with a quarterly decline of $1.8 million in PHA sales [6]. - Rising raw material prices due to the Russia-Ukraine conflict increased canola oil prices by 30%, further exacerbating financial issues [6]. Group 3: Debt and Financial Health - Danimer's total debt reached $324 million in 2025, a 43.45% increase from the previous year, with a debt-to-equity ratio of 1.95, indicating deteriorating solvency [7]. - The company reported a revenue of only $7.63 million in Q2 2024, with an EBITDA of -$9.87 million and a negative free cash flow yield, highlighting severe cash flow issues [7]. - Teknor Apex's acquisition is seen as a strategy to acquire Danimer's valuable patent assets while shedding its debt burden [7].