KAISERAUGST, Switzerland and MAASTRICHT, Netherlands, Feb. 11, 2025 /PRNewswire/ -- dsm-firmenich, innovators in nutrition, health, and beauty, today announces the sale of its stake in the Feed Enzymes Alliance to its equal partner Novonesis, a global leader in biosolutions, for €1.5 billion.
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 €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.
Through a unique alliance formed more than 25 years ago, dsm-firmenich and Novonesis have jointly developed the industry's most competitive, comprehensive and innovative 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.
Dimitri de Vreeze, CEO of dsm-firmenich, commented: "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 separate 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. Further announcements will be made as and when appropriate.
This transaction is expected to be completed in the course of 2025, subject to customary conditions and regulatory approvals.
About dsm-firmenich
As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world's growing population to thrive. With our comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, we work to create what is essential for life, desirable for consumers, and more sustainable for the planet. dsm-firmenich is a Swiss company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, we bring progress to life every day, everywhere, for billions of people. www.dsm-firmenich.com
About Novonesis
Novonesis is a global company leading the era of biosolutions. By leveraging the power of microbiology with science, we transform the way the world produces, consumes and lives. In more than 30 industries, our biosolutions are already creating value for thousands of customers and benefiting the planet. Our 10,000 people worldwide work closely with our partners and customers to transform business with biology.
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Forward-looking statements
This press release may contain forward-looking statements with respect to dsm-firmenich's future (financial) performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. dsm-firmenich has no obligation to update the statements contained in this press release, unless required by law. This communication contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. The English language version of the press release is leading.
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