Novonesis has reached an agreement with dsm-firmenich to dissolve the Feed Enzyme Alliance and take over its sales and distribution activities, in exchange for a total cash consideration of EUR 1.5 billion.
Through a unique alliance formed more than 25 years ago, dsm-firmenich and Novonesis have jointly developed a feed enzymes portfolio for the animal feed markets. At dsm-firmenich, the feed enzymes business is currently part of the Animal Nutrition & Health business unit, which itself will be separated from the group to operate under new ownership, as announced in February 2024. In the context of this separation, the partners evaluated the future of their alliance and concluded that unwinding the alliance would be strategically beneficial for both partners.
The dsm-firmenich activities to be sold under this transaction to Novonesis represented, in 2024, approximately €300 million in total annual net sales. Novonesis will continue a long-term commercial relationship with the Animal Nutrition & Health business, for the re-sale of its feed enzymes through the Animal Nutrition & Health world-class premix network.
dsm-firmenich expects to receive approximately EUR 1.4 billion net in cash, after transaction costs and capital gains tax, and anticipates a book profit on the transaction to be recognized upon closing.
Novonesis, the combined company of Novozymes and Chr. Hansen's merger, will vertically integrate the complete value chain of the alliance, adding dsm-firmenich’s sales and distribution activities alongside its existing product innovation and production capabilities. The fully integrated business will be better equipped to serve existing and new customers with strong insights into core markets and product technologies enhancing R&D and unleashing further innovation.
Dimitri de Vreeze, CEO of dsm-firmenich, said that “the alliance has been a great success for both companies, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under the leadership of Novonesis, and I am pleased that the long-term commercial relationship with our Animal Nutrition & Health business will continue. At the same time, we are on track with the finetuning of our portfolio and next week we will begin the process of seeking transaction options to exit the Animal Nutrition & Health business from the group over the course of 2025.”
Ester Baiget, president and CEO of Novonesis, said, “We are thrilled to announce the strategic acquisition of dsm-firmenich’s portion of the alliance. Growing global protein demand, coupled with increasing land and water scarcity, requires innovative solutions. Now with an expanded presence across the animal biosolutions value chain, we are better positioned to create more value for customers with sustainable value-adding biosolutions.”
dsm-firmenich remains committed to separating the Animal Nutrition & Health business from the group in the course of 2025. With the scope of the separation of the Animal Nutrition & Health business now defined, dsm-firmenich will begin next week the process of seeking transaction options to exit Animal Nutrition & Health.
