Rayonier Advanced Materials Inc. (NYSE: RYAM) has successfully raised €67 million in green capital to fuel its biomaterials strategy. The financing consists of €37 million in secured term loans from French banks Crédit Lyonnais, Arkéa Banque, and BNP Paribas, as well as an additional €30 million in preferred equity provided by Swen Capital Partners through its strategy Swen Impact Fund for Transition 3. This investment secures a 20% stake in the newly formed subsidiary, Ryam Bionova S.A.S.
The valuation of the new entity, Bionova, is estimated to be greater than $160 million, reflecting the confidence and potential in this venture. The proceeds from this capital raise will be channeled into projects aimed at growing Bionova, including the development of a second-generation bioethanol plant and a prebiotics project.
De Lyle Bloomquist, President and CEO of Ryam, expressed the significance of this development, stating, "the formation of Bionova and this latest round of financing are pivotal in our strategic push into biomaterials." He also emphasized the potential return on investment, projecting over $40 million in EBITDA from these initiatives in 2027, highlighting the company's commitment to growth and sustainability.
Ryam is a key player in the production of cellulose-based products, specializing in high purity cellulose specialties used in a wide range of applications, including filters, food, pharmaceuticals, and industrial uses. The company also engages in the production of biofuels, bioelectricity, and other biomaterials such as bioethanol and tall oils, as well as manufacturing products for the paper and packaging markets. With manufacturing operations in the U.S., Canada, and France, Ryam generated $1.6 billion in revenue in 2023.
Swen Capital Partners, the investor in Ryam's new subsidiary, is a significant player in sustainable investments with over €8 billion in assets under management. The company has a strong focus on climate and offers innovative and sustainable investment solutions.
This infusion of green capital marks a significant step for Ryam as it advances its strategic shift into biomaterials, with the potential to drive substantial EBITDA growth from these initiatives in the coming years. Today the company's shares have moved -0.7% to a price of $9.09. For the full picture, make sure to review Rayonier Advanced Materials's 8-K report.
