Houlihan Lokey Advises Danimer Scientific

Houlihan Lokey is pleased to announce that Meredian Holdings Group, Inc., doing business as Danimer Scientific (Legacy Danimer), a next-generation bioplastics company focused on the development and production of biodegradable materials, and Danimer Scientific, Inc. (f/k/a Live Oak Acquisition Corp. or Live Oak) have completed their previously announced business combination. The transaction closed on December 29, 2020.

Founded in 2004 and based in Bainbridge, Georgia, Danimer Scientific is a pioneer in creating environmentally responsible and natural alternative solutions to traditional petroleum-based resins. The company’s signature polymer, Nodax^TM PHA (polyhydroxyalkanoate), is a 100% biodegradable, renewable, and sustainable plastic produced using canola oil as a primary feedstock. Nodax^TM PHA is the first PHA polymer to be certified as marine degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics. As a result, Nodax^TM offers a better beginning-of-life and end-of-life cycle than any of today’s traditional plastics, eliminates the need for recycling, and can replace the 80% of plastics that are never recycled or incinerated.

Danimer Scientific is currently producing and shipping Nodax^TM at a commercial scale level from its existing facility in Winchester, Kentucky. The company has partnered with key manufacturers and consumer products companies such as PepsiCo, Nestlé, Bacardi, Genpak, WinCup, Columbia Packaging Group, Kemira, and Plastic Suppliers Inc. as they introduce more sustainable alternatives to straws, food and beverage containers, and flexible packaging, among others. Based on signed and pending contracts, the company is fully sold out of all production in its Kentucky facility and will use its increased capital base to significantly increase production in seeking to meet the expected current and long-term demand of its customer base.

As a result of this transaction, Danimer Scientific will now have approximately $380 million of unrestricted cash on the balance sheet to fully fund future, planned growth, including the expansion of its current Kentucky facility and the build-out of its contemplated greenfield facility. These funds are primarily composed of cash from Live Oak’s former trust account and concurrent equity private placements from institutional investors, including certain funds managed by affiliates of Apollo, Federated Hermes Kaufmann Small Cap Fund, and more than $50 million from Live Oak affiliates.

Houlihan Lokey served as Danimer’s exclusive financial advisor and assisted in negotiating terms, structure, and other financial aspects of the transaction on behalf of Danimer.