Novonesis acquires full control of Feed Enzymes Alliance from dsm-firmenich in US$1.5B deal

DENMARK – In a major shake-up of the animal nutrition industry, Novonesis has acquired full ownership of the Feed Enzymes Alliance from long-time partner dsm-firmenich for €1.5 billion (US$1.56 billion), marking the end of a 25-year collaboration between the two biotechnology leaders.

The transaction, announced on February 11 and completed this week, delivers approximately €1.4 billion (US$1.45 billion) in net cash to dsm-firmenich after transaction costs. 

The move solidifies Novonesis’ strategic expansion in animal bio-solutions, allowing the Danish company to fully integrate the alliance’s innovation, production, and sales activities.

Novonesis, formed by the 2023 merger of Novozymes and Chr. Hansen, is now positioned to take over sales and distribution of the feed enzymes business, which was part of dsm-firmenich’s Animal Nutrition & Health division and generated around €300 million (approximately US$324 million) in annual net sales in 2024.

“We are thrilled to announce the strategic acquisition of dsm-firmenich’s portion of the alliance. With an expanded presence in the animal bio-solutions sector, we are better positioned to deliver innovative, sustainable, and value-adding bio-solutions to our customers,” said Ester Baiget, CEO of Novonesis.

The acquisition aligns with Novonesis’ long-term strategy to enhance revenue growth, improve margins, and unlock synergies in the animal nutrition sector. 

The company sees the deal as critical to meeting global protein demand amid growing pressure on natural resources.

“Until now, our company has primarily focused on probiotics for animal nutrition. With this acquisition, we gain major advantages,” Tina Sejersgård Fanø, the Executive Vice President, Planetary Health Biosolutions, commented during an interview with All About Feed. 

“First, we can offer a more comprehensive product portfolio to our customers. For example, Novonesis already has a strong presence in North America, selling probiotics to animal nutrition customers. Now, we can also provide enzymes to the same customer base, creating a broader offering.”

She added that the company would also be in a position to increase its market reach as it integrates additional employees as part of the deal with dsm-firmenich, which means more people on the ground and a larger footprint in the industry.

For dsm-firmenich, the sale is a step toward reshaping its portfolio. CEO Dimitri de Vreeze commented, “The alliance has been a great success, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under Novonesis’ leadership.

At the same time, we are on track with refining our portfolio and will begin exploring transaction options to exit the Animal Nutrition & Health business in 2025.”

Despite the end of their formal partnership, both companies will maintain a commercial relationship, with Novonesis leveraging dsm-firmenich’s extensive premix network for enzyme resale.

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