German chemical giant Bayer AG is working on a deal for Ginkgo Bioworks Holdings Inc. to take over the Bayer biologics research and development site in West Sacramento.
Boston-based Ginkgo (NYSE: DNA) will take over the 175,000-square-foot offices and laboratories and staff of Bayer Crop Science in West Sacramento. Ginkgo will develop products for Bayer, which will market and distribute products developed at the West Sac lab.
The companies said the transaction is pending final terms, and it should close by the end of this year.
Bayer didn’t respond to inquiries about how many employees it has in West Sacramento. Bayer also operates a major seed development and research station in Woodland. As of last year, Bayer employed 350 at its campuses in Woodland and Bayer Crop Science in West Sacramento.
In West Sacramento, Ginkgo will also integrate the research and development platform assets of Joyn Bio, a joint venture of Ginkgo and Bayer formed in 2017 and initially funded with $100 million. Joyn is working on products that fix nitrogen for plant growth so farmers don't have to use synthetic nitrogen, which causes pollution and has a dramatic carbon footprint.
Bayer uses the West Sacramento site for research and development of biological products to combat pests and stimulate crop growth.
Bayer moved its Crop Science division from Davis into the West Sacramento offices and labs in 2014, after a complete remodel of the building. At that time, Mike Miille was head of Bayer Crop Science Biologics, and the world headquarters for that division was in West Sacramento. Miille is now CEO of Joyn Bio, which has a research station in Woodland and offices in Boston.
The Ginkgo operation in West Sacramento will develop biological solutions in fields like nitrogen optimization, carbon sequestration and crop protection. Gingko genetically modifies microbes to develop beneficial traits that can be used for a variety of purposes.
“The transaction will enable Bayer to expand its leading biologicals position, strengthen its access to key enabling technology in synthetic biology, and maintain Bayer’s role as the preferred research, development, and commercial partner in the biologics segment,” said Bayer, in a news release.
The aim of the collaboration is to help Bayer continue to expand its biologics product range to create tailored solutions for climate-smart and sustainable options for additional crops, Bayer said.
