Novonesis acquires Feed Enzymes Alliance from dsm-firmenich in €1.5B deal
Nutrition, health, and beauty ingredient producer dsm-firmenich is selling its stake in the Feed Enzymes Alliance to long-time partner Novonesis for €1.5 billion (~US$1.55 billion). The sale includes the dissolution of the 25-year old alliance. Starting next week, dsm-firmenich says it will begin seeking buyers or other strategic options for its Animal Nutrition & Health (ANH) division.
The move marks a shift in dsm-firmenich’s portfolio as it continues to streamline its operations and advance its plans to separate its ANH business and focus on food and nutrition ingredients.
Following the transaction, dsm-firmenich states that it expects to receive around €1.4 billion (~US$1.44 billion) in net cash after deducting transaction costs and capital gains tax. The company anticipates recognition of a book profit on the transaction upon its completion.
“The Alliance has been a great success for both companies, establishing a global leadership position in feed enzymes,” says 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 ANH 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 ANH business from the group over the course of 2025.”
Details of the transaction
The transaction is subject to customary regulatory approvals and conditions and is expected to close in the course of 2025. Further updates on the separation of dsm-firmenich’s ANH division will be announced as the process advances.
The company states that the sale provides a significant financial boost and strengthens its ability to focus on core nutrition, health, and beauty innovations while streamlining its portfolio.
For Novonesis, the company reveals that acquiring full ownership of the Feed Enzymes Alliance enables it to further expand its biosolutions leadership, drive innovation in feed enzyme technologies, and solidify its position as a leader in animal feed enzymes.
“Growing global protein demand, coupled with increasing land and water scarcity, requires innovative solutions,” explains Ester Baiget, president and CEO of Novonesis. “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.”
“The end of an era”
The sale includes dsm-firmenich’s feed enzymes business, which has been a key part of its ANH division. In 2024, this segment accounted for approximately €300 million (~US$3.1 million) in annual net sales.
Novonesis will take full control of the Feed Enzymes Alliance, and the two companies reveal they have agreed to maintain a long-term commercial relationship to ensure the continued re-sale of feed enzymes through dsm-firmenich’s premix network.
According to the companies, the Feed Enzymes Alliance, which was formed over 25 years ago, has been a pioneering partnership between dsm-firmenich and Novonesis.
The alliance has developed competitive and innovative feed enzyme portfolios in the animal nutrition industry. However, with dsm-firmenich’s broader strategy of separating its ANH business, both companies concluded that dissolving the alliance was the best strategic path forward.
