dsm‑firmenich completes US$4B exit from animal nutrition

SWITZERLAND – dsm-firmenich, a global leader in sustainable animal feed solutions, has finalised the sale of its Animal Nutrition & Health (ANH) division to CVC Capital Partners, marking a decisive step in its transformation into a consumer‑focused powerhouse.

The transaction, valued at €2.2 billion (approximately US$2.38 billion) including an earnout of up to €0.5 billion (approximately US$0.54 billion), follows last year’s €1.5 billion (approximately US$1.62 billion) divestment of feed enzymes activities to Novonesis.

Together, the deals represent a total enterprise value of €3.7 billion (approximately US$4 billion) and complete the company’s strategic withdrawal from industrial animal nutrition.

The ANH business, which generated €3.5 billion (approximately US$3.78 billion) in net sales in 2025 and employed 8,000 people, has long been a global leader in science‑based solutions for livestock and pet nutrition. 

Its portfolio spans vitamins, premixes, carotenoids, aroma ingredients, and feed additives designed to improve animal health, performance, and sustainability. 

Under CVC’s ownership, ANH will be split into two standalone companies based in Kaiseraugst, Switzerland.

The “Solutions Company,” focusing on performance solutions, premixes, and precision services, and the “Essential Products Company,” covering vitamins, carotenoids, and aroma ingredients. 

dsm‑firmenich will retain a 20% equity stake in both entities, having entered into a long‑term supply agreement to ensure continuity of supply for vitamins for human and pet food applications.

The company expects to receive about €1.2 billion (approximately US$1.3 billion) after closing, including €0.6 billion (approximately US$0.65 billion) in net cash proceeds, €0.5 billion  (approximately US$0.54 billion) in debt and liability transfers, and €0.1 billion (approximately US$0.11 billion) in a vendor loan note. 

dsm will also provide the Essential Products Company with a loan facility of up to €450 million (approximately US$486 million) and, if required, additional liquidity support of €115 million (approximately US$124 million). 

By shedding its industrial animal nutrition operations, dsm is positioning itself as a pure‑play leader in human nutrition, health, and beauty.

Capital returns and shareholder commitments

Alongside its portfolio reshaping, dsm‑firmenich has announced plans to launch a new share repurchase program in Q1 2026. 

The initiative will see the company buy back ordinary shares worth €0.5 billion (approximately US$0.64 billion), reducing its issued capital and signalling confidence in its long‑term strategy. 

Management has also reaffirmed its commitment to consistent shareholder returns through a “stable to preferably rising” dividend policy. 

Under this framework, the company aims to maintain a dividend of €2.50 (approximately US$2.7) per ordinary share, with progressive increases over time, reflecting its focus on sustainable value creation

 “This transaction represents a unique opportunity to create two new leading companies in the animal nutrition & health space… Both businesses offer significant potential for value creation.” Steven Buyse, Managing Partner at CVC

The broader implication is that dsm‑firmenich is aligning with global consumer trends that favour wellness, sustainability, and personalised nutrition.

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