dsm-firmenich Divests Animal Nutrition & Health to CVC for €2.2 Billion

dsm-firmenich, a leader in nutrition, health, and beauty, has announced a definitive agreement with CVC, a prominent global private equity firm, to divest its Animal Nutrition & Health (ANH) business. The transaction is valued at approximately €2.2 billion, which includes an earnout of up to €0.5 billion. Following the completion of this deal, dsm-firmenich will retain a 20% equity stake in the ANH Companies, partnering with CVC.

This divestment follows dsm-firmenich’s earlier sale of its Feed Enzymes activities to Novonesis for €1.5 billion in 2025, representing a strategic shift towards becoming a fully focused consumer company. The total enterprise value of ANH, including the previous sale, amounts to €3.7 billion.

As part of its financial strategy, dsm-firmenich plans to initiate a new share repurchase program aimed at buying back ordinary shares worth €0.5 billion, set to commence in Q1 2026. The company has also committed to a ‘stable to preferably rising’ dividend policy, targeting a consistent dividend of €2.50 per share.

ANH is recognized as a global provider of science-based animal nutrition and health solutions, generating annualized net sales of approximately €3.5 billion and employing around 8,000 individuals. The business encompasses various segments, including Performance Solutions, Premix, and Precision Services, as well as Vitamins, Carotenoids, and Aroma Ingredients. Notably, Bovaer® and Veramaris™ will remain under dsm-firmenich’s ownership.

The divestment will result in the establishment of two standalone companies based in Kaiseraugst, Switzerland: the Solutions Company, which will focus on Performance Solutions, Premix, and Precision Services, and the Essential Products Company, which will handle Vitamins, Carotenoids, and Aroma Ingredients. Both entities will collaborate closely, particularly regarding vitamin supply in the animal nutrition and health value chain.

To ensure continuity, dsm-firmenich will enter into a long-term supply agreement with the Essential Products Company for vitamins, securing supply for both human and pet food applications. The transaction values ANH at an enterprise value of €2.2 billion, reflecting a 7x EV/Adjusted EBITDA multiple based on normalized Adjusted EBITDA.

Upon closing, dsm-firmenich expects to receive approximately €1.2 billion, which includes an estimated €0.6 billion in net cash proceeds and a vendor loan note of €0.1 billion. Additionally, dsm-firmenich will provide the Essential Products Company with a loan facility of up to €450 million.

The deal is anticipated to close by the end of 2026, subject to regulatory approvals and the establishment of the new standalone companies. The assets and liabilities of the divested business will be classified as Assets Held for Sale, with financial results reclassified to Discontinued Operations.

Dimitri de Vreeze, CEO of dsm-firmenich, stated, “This transaction reflects our commitment to accelerating our growth and creating long-term value for all stakeholders. It marks the final step in our journey to evolve into a leading consumer business.” Steven Buyse, Managing Partner at CVC, added, “This transaction represents a unique opportunity to create two new leading companies in the animal nutrition and health space.”