DSM-Firmenich has completed the sale of its stake in the Feed Enzymes Alliance to its partner Novonesis for EUR1.5 billion (US$1.7 billion).
DSM-Firmenich received approximately EUR1.4 billion net in cash after transaction costs.
The deal was announced on February 11. According to a press release at that time, Novonesis will continue a long-term commercial relationship with DSM-Firmenich’s Animal Nutrition & Health business, for the resale of its feed enzymes through the Animal Nutrition & Health premix network.
Through a unique alliance formed more than 25 years ago, DSM-Firmenich and Novonesis have jointly developed a competitive, comprehensive and innovative feed enzymes portfolio for the animal feed markets.
“The alliance has been a great success for both companies, establishing a global leadership position in feed enzymes,” said Dimitri de Vreeze, CEO of DSM-Firmenich, in February. “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 DSM-Firmenich, the feed enzymes business is part of the Animal Nutrition & Health business unit, which will be separated from the company 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.
DSM-Firmenich remains committed to separate the Animal Nutrition & Health business from the group in 2025. With the scope of the separation of the Animal Nutrition & Health business now defined, DSM-Firmenich has begun the process of seeking transaction options to exit Animal Nutrition & Health. This transaction is expected to be completed in 2025, subject to customary conditions and regulatory approvals.
