Strategic Shift Strengthens Novonesis’ Position in Animal Biosolutions and Supports dsm-firmenich’s Portfolio Restructuring
dsm-firmenich, a global leader in nutrition, health, and beauty, has announced the sale of its stake in the Feed Enzymes Alliance to Novonesis, a pioneering company in biosolutions, for €1.5 billion. The transaction represents a major shift in the sector, solidifying Novonesis’ position in animal biosolutions while dsm-firmenich progresses with its separation of the Animal Nutrition & Health business.
Strengthening Market Leadership
The Feed Enzymes Alliance, established over 25 years ago, has been a driving force in the animal feed industry, providing innovative, sustainable solutions to meet growing global protein demands. The dsm-firmenich business segment being transferred to Novonesis generated €300 million in net sales in 2024, underscoring its strong market presence.
Despite the sale, dsm-firmenich and Novonesis will maintain a long-term commercial relationship, ensuring the continued distribution of feed enzyme solutions through dsm-firmenich’s world-class Animal Nutrition & Health premix network.
Financial and Strategic Implications
dsm-firmenich is expected to receive €1.4 billion in net cash after transaction costs and capital gains tax. The deal is part of its broader strategy to streamline its portfolio and prepare for the full separation of its Animal Nutrition & Health business, expected to conclude in 2025.
Dimitri de Vreeze, CEO of dsm-firmenich, emphasized the significance of this transition, stating:
“The Feed Enzymes Alliance has been a tremendous success, positioning us as a global leader in feed enzymes. We are confident that under Novonesis’ leadership, this business will continue to thrive. This move is aligned with our strategy to refine our portfolio, and we are on track to finalize the separation of our Animal Nutrition & Health business over the course of 2025.”
Ester Baiget, CEO of Novonesis, shared her enthusiasm about the acquisition, stating:
“This strategic acquisition strengthens Novonesis’ capabilities in the animal biosolutions value chain. With global protein demand rising and natural resources under strain, innovative feed solutions are essential. By expanding our footprint in this space, we can create even more value for our customers with sustainable and high-performance biosolutions.”
A Shift in the Animal Nutrition Landscape
The sale of the Feed Enzymes Alliance stake represents a shift in the global animal nutrition landscape, with Novonesis now poised to lead in enzyme-based feed solutions. dsm-firmenich’s exit from this segment marks a turning point in its business strategy, allowing it to reallocate resources towards its core focus areas.
As dsm-firmenich prepares to divest its Animal Nutrition & Health business, it has begun exploring transaction options, with further announcements expected in the coming months.
What’s Next?
The transaction is expected to be completed in 2025, pending regulatory approvals and customary closing conditions. As the global demand for sustainable and efficient feed solutions grows, this acquisition positions Novonesis at the forefront of biosolutions-driven animal nutrition.
With the Animal Nutrition & Health industry evolving rapidly, this development signals a new era of strategic consolidations and shifts in industry leadership.
Stay tuned for further updates as this landmark deal unfolds.
Source: Dairy Dimension
