DSM-Firmenich to sell its stake in Feed Enzymes Alliance for US$1.6 billion
SWITZERLAND – DSM-Firmenich is selling its share in the Feed Enzymes Alliance to its partner Novonesis for US$1.6 billion.
The deal comes as both companies adjust their strategies in the animal nutrition sector to strengthen their positions in the market.
The assets involved in the sale generated around US$320 million in net sales in 2024, highlighting the importance of feed enzymes within the broader livestock and animal nutrition industries.
Even after the sale, Novonesis will continue working with DSM-Firmenich’s Animal Nutrition & Health division through a commercial agreement that allows DSM-Firmenich to keep selling these enzymes via its premix distribution network.
This agreement comes at a time when global demand for protein is increasing due to population growth and shifts in dietary habits.
As food producers look for high-quality and sustainable feed solutions, securing reliable sources of key ingredients is becoming a priority in efforts to meet consumer expectations for transparency and sustainability.
DSM-Firmenich expects to receive approximately US$1.5 billion from the sale after accounting for transaction costs and taxes.
The company anticipates recording a profit on its financial statements once the deal is finalized, which will contribute to its overall financial outlook.
This sale aligns with DSM-Firmenich’s decision earlier in 2024 to separate its Animal Nutrition & Health business from the rest of the company.
After a detailed assessment, both parties determined that dissolving the Feed Enzymes Alliance would be a beneficial step for their businesses.
DSM-Firmenich CEO Dimitri de Vreeze acknowledged the alliance’s contributions over the past 25 years, stating that it helped establish a strong global presence in feed enzymes.
He expressed confidence that Novonesis would continue to grow the business and emphasized that the companies would maintain their long-term commercial relationship.
Novonesis President and CEO Ester Baiget said that increasing global demand for protein, along with constraints on land and water, is pushing the need for new solutions in animal nutrition.
She noted that with a greater presence in the animal biosolutions industry, Novonesis will be able to provide more value to its customers through sustainable products.
The transaction is expected to be completed in 2025, subject to regulatory approval and standard closing conditions.
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