DSM-Firmenich has entered into an agreement with CVC, a global private markets manager, to divest its Animal Nutrition & Health (ANH) business for an enterprise value of about EUR2.2 billion (US$2.62 billion), which includes an earnout of up to EUR0.5 billion. DSM-Firmenich will retain a 20% equity stake in the divested ANH Companies, in partnership with CVC.
This transaction comes after the sale of the feed enzymes activities to Novonesis for EUR1.5 billion in 2025 and marks the final strategic step for DSM-Firmenich to become a fully focused consumer company active in nutrition, health and beauty. The total enterprise value of ANH, including the prior sale of the Feed Enzymes activities, represents EUR3.7 billion.
ANH generated annualized net sales of approximately EUR3.5 billion in 2025, with around 8,000 employees. The divestment includes all ANH activities: Performance Solutions, Premix, Precision Services, as well as Vitamins, Carotenoids and Aroma Ingredients. As previously communicated, Bovaer and Veramaris remain part of DSM-Firmenich.
ANH will be split into two new standalone companies, both based in Kaiseraugst, Switzerland:
- Solutions business: Will bring together Performance Solutions, Precision Services and Premix for the animal value chain. The business will continue pioneering advances in animal nutrition and health through cutting edge science with premixes, mycotoxin deactivators, feed enzymes, microbials, special nutrients, eubiotics and other innovations to improve profitability, increase feed conversion, reduce mycotoxins, tackle antimicrobial resistance, improve gut health and lower livestock emissions.
- Essential Products business: This business will focus on providing customers with the highest quality of ingredients that are essential for nutrition, health and well-being. In strategic collaboration, the Essential Products business will continue to supply to the Solutions business for its premixes and to DSM-Firmenich for human applications and pet food applications, ensuring that an integrated offering remains intact.
The transaction is expected to be completed at the end of 2026 and is subject to conditions including regulatory approvals, the finalization of all required employee consultation processes and the creation and separation of a standalone Essential Products Company and standalone Solutions Company by DSM-Firmenich.
DSM-Firmenich will retain a 20% equity stake in both the Essential Products Company and the Solutions Company. DSM-Firmenich will enter into a long-term vitamins supply agreement with the Essential Products Company to ensure continuity and supply security in human and pet food applications.
DSM-Firmenich expects to receive approximately EUR1.2 billion after closing of which an estimated EUR0.6 billion in net cash proceeds, an estimated EUR0.5 billion in debt and liability transfers to the ANH Companies, and EUR0.1 billion in the form of a vendor loan note.
DSM-Firmenich will provide the Essential Products Company with a loan facility of up to EUR450 million, available to be drawn as required, and if needed, additional liquidity support of up to EUR115 million, to be redeemed latest at exit.
The deal includes an earnout of up to EUR0.5 billion, and a 20% equity stake, the value of which will be realized upon exit from each of the respective ANH Companies.
The company intends to launch a new share repurchase program to buy back ordinary shares with an aggregate market value of EUR0.5 billion and reduce its issued capital. The program is planned to commence in Q1 2026.
In addition, DSM-Firmenich aims to deliver consistent and sustainable dividends to its shareholders. To achieve this, the company has adopted a “stable to preferably rising” dividend policy, reflecting the company’s commitment to long-term value creation. Under this policy, DSM-Firmenich aims to maintain a stable dividend of EUR2.50 per ordinary share and progressively increase dividends over time.
