TerraVia (formerly Solazyme) recently announced the sale of 80% of its interest in its Algenist business to Tengram Capital Partners, a private equity firm that focuses exclusively on consumer and retail companies that owns exclusive, highly recognizable brands. As part of the transaction, TerraVia will continue to be an ingredient supplier for the Algenist brand, which includes skincare products containing TerraVia’s algae-based ingredients including Alguronic acid and microalgae oil.

The Algenist skincare line is being distributed in major retail channels such as Sephora, ULTA and QVC.

As part of the transaction, Tengram will also contribute significant capital to the business to accelerate broader commercialization. At closing, TerraVia will receive around $20 million. Tengram and TerraVia have also agreed to create a partnership focused on identifying additional opportunities to use algae-based ingredients across all segments of the beauty industry.

The transaction will enable TerraVia to focus on captive commercial operations on foods and nutrition, while maintaining participation in Algenist’s future success, according to TerraVia’s co-founder, chairman and CEO, Jonathan Wolfson.

Here is an interesting analysis from a longtime Solazyme/TerraVia investor, Kevin Quon on Seeking Alpha about the transaction.