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DSM-Firmenich has announced the sale of its stake in the Feed Enzymes Alliance to its equal partner Novonesis for €1.5 billion.

This transaction underscores the evolving landscape of the animal nutrition sector, reflecting both companies' commitment to enhancing their respective market positions.

The assets being sold generated approximately €300 million in annual net sales in 2024, indicating the strong performance of the feed enzymes segment within the broader animal nutrition and global livestock markets.

Following the sale, Novonesis will maintain a long-term commercial relationship with DSM-Firmenich's Animal Nutrition & Health unit, facilitating the resale of these feed enzymes through a well-established premix network.

This is particularly relevant as global protein demand rises, driven by population growth and changing dietary preferences. The ability to source high-quality, sustainable feed ingredients will be essential for manufacturers aiming to meet consumer expectations for transparency and sustainability in their supply chains.

DSM-Firmenich expects to net around €1.4 billion from the transaction after accounting for costs and capital gains tax. The company anticipates recognising a book profit upon the deal's closure, further solidifying its financial standing.

This divestiture is part of a broader strategy initiated in February 2024, when DSM-Firmenich announced plans to separate its Animal Nutrition & Health business from the parent group.

The decision to unwind the Feed Enzymes Alliance was reached after careful evaluation, with both parties agreeing that this move would be strategically advantageous.

Dimitri de Vreeze, CEO of DSM-Firmenich, highlighted the success of the alliance over its 25-year history: "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."

Ester Baiget, president and CEO of Novonesis, welcomed the acquisition, adding: "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."

The transaction is expected to conclude in 2025, pending customary conditions and regulatory approvals.

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