DSM-Firmenich has sold its stake in the Feed Enzymes Alliance to its partner Novonesis for EUR1.5 billion (US$1.55 billion).
The DSM-Firmenich activities to be sold under this transaction represented approximately EUR300 million in total annual net sales in 2024. Novonesis will continue a long-term commercial relationship with DSM-Firmenich’s Animal Nutrition & Health business, for the re-sale of its feed enzymes through the Animal Nutrition & Health premix network.
“We are thrilled to announce the strategic acquisition of DSM-Firmenich’s portion of the alliance,” said Ester Baiget, president and CEO of Novonesis. “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 expects to receive approximately EUR1.4 billion net in cash, after transaction costs and capital gains tax, and anticipates a book profit on the transaction to be recognized upon closing.
Through a unique alliance formed more than 25 years ago, DSM-Firmenich and Novonesis have jointly developed a competitive, comprehensive and innovative feed enzymes portfolio for the animal feed markets.
“The alliance has been a great success for both companies, establishing a global leadership position in feed enzymes,” said Dimitri de Vreeze, CEO of DSM-Firmenich. “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 DSM-Firmenich, the feed enzymes business is part of the Animal Nutrition & Health business unit, which will be separated from the company 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.
DSM-Firmenich remains committed to separate the Animal Nutrition & Health business from the group in 2025. With the scope of the separation of the Animal Nutrition & Health business now defined, DSM-Firmenich next week will begin the process of seeking transaction options to exit Animal Nutrition & Health. This transaction is expected to be completed in 2025, subject to customary conditions and regulatory approvals.
