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Ara Partners Commits $65 Million in Additional Capital to BioVeritas

BRYAN, TX & ABLC Next – October 26, 2022 – BioVeritas, the only bio-based ingredients company to pioneer a proprietary upcycling process, today announced that its majority shareholder Ara Partners has committed $65 million in additional capital to support the rapid commercialization of the company’s revolutionary production process for clean-label food and feed ingredients, gut health supplements, and industrial materials. Ara Partners acquired BioVeritas in 2021 and recruited David Austgen, a 35-year veteran of the energy, chemicals, biofuels, and biochemicals industries, as BioVeritas’ CEO.


The company has already started delivering samples for testing to customers and potential partners, including major players in the clean-label ingredients market, from its Market Development Unit (MDU) in Bryan, TX. The new funds raised by BioVeritas will support major upgrades to the MDU, enabling the delivery of larger-scale, food-grade samples to customers and partners by Q1 2023, and development of the company’s first commercial scale production facility. Engineering for that facility is underway. The first commercial facility is expected to have production capacity of up to 20 kilotons per year and will commence production in 2025.


"Petrochemicals are part of nearly every aspect of our lives, including our global food supply” stated Austgen. "Our mission at BioVeritas is to decarbonize the global human & animal food, feed, and gut health industries by replacing petrochemical ingredients with highly efficacious plant-based natural equivalents, thereby contributing to a healthier population and a more sustainable planet.”


BioVeritas’ solutions are produced via the company’s proprietary process that upcycles underutilized and excess biomass from the food and agricultural industries into short- and medium-chain fatty acids through a self-regulating natural ecosystem of microorganisms. This ecosystem mimics what occurs in the human and animal gastrointestinal tracts. BioVeritas then recovers these organic acids in the greenest manner possible without the use of any harsh or toxic solvents. BioVeritas’ process is a virtual closed loop, making it one of the most natural and clean ingredient solutions available to the market.


Ara Partners is a private equity firm that invests in companies that manufacture everyday products with low-carbon and cost-saving technologies.


Cory Steffek, Partner at Ara and Chairman of the Board at BioVeritas, said, “This additional funding commitment accelerates the scale up and commercialization of BioVeritas’ breakthrough technology. It also supports BioVeritas’ commitment to being a trusted partner for companies seeking natural, clean label solutions for food preservation, human and animal health, and industrial materials.”


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About BioVeritas

BioVeritas, headquartered in Bryan, Texas, is a bio-based ingredients company that is commercializing a proprietary upcycling process. BioVeritas’ products have industry-leading efficacy and quality intended for innovative companies seeking natural solutions for food preservation, human and animal health, and industrial materials. For more information on BioVeritas, please visit www.bioveritas.com.


About Ara Partners

Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that provide significant decarbonization impact. It operates from offices in Boston, Houston and Dublin. Ara Partners closed its second fund with approximately $1.1 billion in capital commitments in September 2021. For more information on Ara Partners, please visit www.arapartners.com.


BioVeritas media contact:

Nicolia Wiles

PRIME PR

(512) 477-7373

M: 512.698.7373

nwiles@prime-techpr.com


Ara media contact:

Mark Semer / Alex Jeffrey

Gasthalter & Co.

(212) 257-4170

arapartners@gasthalter.com



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