dsm-firmenich eyes major shakeup with US$3.2B animal nutrition exit

NETHERLANDS – DSM-Firmenich is edging closer to divesting its Animal Nutrition and Health (ANH) business in a deal that could be worth around €3 billion (US$3.2 billion), with final bids expected by July 24, according to Dutch newspaper Financieele Dagblad and sources familiar with the matter. 

The Amsterdam-listed Dutch-Swiss group is actively seeking to reshape its portfolio by stepping away from the volatile vitamin market and doubling down on its focus areas of fragrance, flavour, and food innovation.

Private equity heavyweights Apollo Global Management, Bain Capital, CVC Capital Partners, and Lone Star Funds are all reportedly exploring offers for the business. 

Industry players such as Nutreco, Archer-Daniels-Midland (ADM), and Cargill have also been invited to submit bids. DSM-Firmenich has enlisted UBS Group and Piper Sandler to manage the sale process.

The company began collecting indicative offers in April and aims to finalise the transaction later this summer.

“Deliberations are ongoing and may not lead to a transaction,” insiders cautioned, but momentum around the auction has been building amid strong investor interest in agri-health and life sciences.

Strategic exit from volatile market

DSM-Firmenich confirmed in early 2024 that it intends to carve out the ANH division by the end of 2025. 

The unit, which includes essential feed ingredients such as vitamins, enzymes, carotenoids, and lipids, has long been a cornerstone of livestock nutrition. 

However, growing competition from low-cost producers, especially in China, has made the business increasingly unpredictable.

“The separation of our ANH business will allow us to reduce our exposure to the volatile vitamins market,” the company noted, adding that the move would “enable the ANH division to maximise its potential under a new ownership structure.”

DSM-Firmenich was formed in 2023 through the merger of Royal DSM and Swiss ingredients giant Firmenich International.

The company now serves global customers in the food, fragrance, and personal care sectors and is shifting its focus toward product innovation that blends functionality with sensory experience.

End of an era in feed enzymes

The planned divestiture follows another significant move by DSM-Firmenich, its exit from the Feed Enzymes Alliance. 

In February, Danish biotech firm Novonesis acquired full ownership of the alliance for €1.5 billion (US$1.56 billion), ending a 25-year partnership. 

The transaction delivered approximately €1.4 billion (US$1.45 billion) in net cash to DSM-Firmenich and transferred all sales, production, and R&D operations to Novonesis.

“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 Novonesis CEO Ester Baiget.

DSM-Firmenich CEO Dimitri de Vreeze echoed the strategic nature of the shift: “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.”

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