dsm-firmenich is selling its stake in the Feed Enzymes Alliance — a livestock nutrition and health business — to Novonesis, its equal partner in the enterprise, for €1.5 billion (US$1.55 billion). Share prices in both companies spiked this morning following the announcement. 

The sales value of dsm-firmenich’s activities in the Alliance was valued at approximately €300 million (US$309 million) in 2024. Novonesis says it 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 (US$1.44 billion) net after transaction costs and capital gains tax and anticipates a profit on the sale. 

The Feed Enzymes Alliance was formed in 2001 and combined dsm-firmenich’s sales network with Novozymes’ expertise in enzyme development. 

Ester Baiget, president and CEO of Novonesis, says: “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.”

End of the Alliance 

dsm-firmenich recently announced it would separate its Animal Nutrition & Health unit from its main business, marking a strategic shift away from livestock nutrition. In the context of this separation, the company’s partners decided that unwinding the Alliance would be the beneficial option. 

Dimitri de Vreeze, CEO of dsm-firmenich, comments: “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 fine tuning 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 throughout 2025.”

With the terms of the separation now defined, dsm-firmenich will begin the process of seeking transaction options for the exit.

This transaction is expected to be completed in 2025, subject to customary conditions and regulatory approvals.