February 11, 2025

 

dsm-firmenich to sell stake in Feed Enzymes Alliance to Novonesis for US$1.5 billion

 

 

dsm-firmenich on February 11  announced the sale of its stake in the Feed Enzymes Alliance to its equal partner Novonesis, a global leader in biosolutions, for €1.5 billion (US$1.548 billion).

 

The dsm-firmenich activities to be sold under this transaction to Novonesis represented in 2024 approximately €300 million (US$309.6 million) in total annual net sales. Novonesis will continue a long-term commercial relationship with the Animal Nutrition & Health business, for the re-sale of its feed enzymes through the Animal Nutrition & Health world-class premix network.

 

dsm-firmenich expects to receive approximately €1.4 billion (US$1.4448 billion) net in cash, after transaction costs and capital gains tax, and anticipates a book profit on the transaction to be recognised upon closing.

 

Through a unique alliance formed more than 25 years ago, dsm-firmenich and Novonesis have jointly developed the industry's most competitive, comprehensive, and innovative feed enzymes portfolio for the animal feed markets.

 

At dsm-firmenich, the feed enzymes business is currently part of the Animal Nutrition & Health business unit, which itself will be separated from the group to operate under new ownership, as announced in February 2024. In the context of this separation, the partners evaluated the future of their alliance and concluded that unwinding the alliance would be strategically beneficial for both partners.

 

Dimitri de Vreeze, chief executive officer of dsm-firmenich, said: "The Alliance has been a great success for both companies, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under the leadership of Novonesis, and I am pleased that the long-term commercial relationship with our Animal Nutrition & Health business will continue. At the same time, we are on track with the finetuning of our portfolio and next week, we will begin the process of seeking transaction options to exit the Animal Nutrition & Health business from the Group over the course of 2025."

 

Ester Baiget, president and CEO of Novonesis, said: "We are thrilled to announce the strategic acquisition of dsm-firmenich's portion of the Alliance. Growing global protein demand, coupled with increasing land and water scarcity, requires innovative solutions. Now with an expanded presence across the animal biosolutions value chain, we are better positioned to create more value for customers with sustainable value adding biosolutions."

 

dsm-firmenich remains committed to separate the Animal Nutrition & Health business from the group in the course of 2025. With the scope of the separation of the Animal Nutrition & Health business now defined, dsm-firmenich will begin next week the process of seeking transaction options to exit Animal Nutrition & Health.

 

This transaction is expected to be completed in the course of 2025, subject to customary conditions and regulatory approvals.

— dsm-firmenich