dsm-firmenich’s animal health unit nears US$2.6B deal with CVC Capital

NETHERLANDS – dsm-firmenich’s Animal Nutrition & Health unit, a global leader in sustainable animal feed solutions, is close to finalizing a €2.2 billion (approximately US$2.6 billion) deal with CVC Capital Partners, one of Europe’s largest private equity firms, with an announcement possible within days.

The auction was launched in 2024 after dsm announced plans to separate its animal nutrition division by the end of 2025, with an initial valuation of €3 billion (approximately US$3.6 billion).

This move was part of a broader strategy to reduce exposure to the volatile vitamins market, which has faced heavy price pressure from Chinese competitors.

By mid-2025, several private equity firms had expressed interest. CVC and Apollo Global Management, known for its strength in private credit and insurance solutions, emerged as the final bidders.

The process was prolonged, as the bidders pushed for dsm-firmenich to separate its vitamins business from the rest of the unit. dsm, however, insisted on selling the division as a whole.

By the end of 2025, however, Apollo withdrew, leaving CVC as the sole remaining bidder.

Strategic shift

DSM established its Animal Nutrition & Health unit decades ago as part of its expansion into vitamins and feed additives, eventually becoming a global leader in livestock and aquaculture nutrition.

The unit serves poultry, swine, ruminant, and aquaculture industries worldwide, with a strong presence in Europe, Asia, and Latin America.

However, the vitamins segment has become increasingly volatile, with prices collapsing due to oversupply. This has squeezed profit margins, making the unit less attractive compared to dsm’s higher-margin human nutrition and fragrance businesses.

DSM is now pivoting toward flavors, fragrances, and food innovation, moving away from commodity vitamins.

Capital returns and portfolio reshaping  

Alongside the pending €2.2 billion (approximately US$2.6 billion) sale of its Animal Nutrition & Health unit to CVC Capital Partners, dsm-firmenich has reinforced its commitment to shareholder value through a major capital return program.

 In December 2025, the company completed a €1.08 billion (approximately US$1.3 billion) share repurchase ahead of schedule, buying back nearly 13 million shares. The cancellation of over 12 million of these shares is planned for early 2026, a move that will reduce issued capital and strengthen earnings per share, underscoring confidence in its long-term strategy.

This dual track of divestment and capital discipline highlights dsm-firmenich’s broader transformation. 

By exiting the volatile vitamins-heavy animal nutrition business and simultaneously returning capital to investors, the company is signaling a sharper focus on higher-margin areas such as flavors, fragrances, and food innovation.

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