Key Takeaways
- dsm-firmenich agreed to divest its Animal Nutrition & Health (ANH) business to CVC.
- The transaction values ANH at approximately €2.2 billion, including a potential earnout.
- dsm-firmenich will retain a 20% equity stake in the divested businesses.
- The divestment marks dsm-firmenich’s final step toward becoming a pure consumer-focused company.
- Completion of the transaction is expected by the end of 2026, subject to regulatory approvals.
dsm-firmenich Announces Divestment of Animal Nutrition & Health Unit
dsm-firmenich announced that it 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 approximately €2.2 billion, including an earnout of up to €0.5 billion. As part of the transaction, dsm-firmenich will retain a 20% equity stake in the divested ANH companies alongside CVC.
The divestment follows the 2025 sale of dsm-firmenich’s Feed Enzymes activities to Novonesis for €1.5 billion and represents the final strategic step in dsm-firmenich’s transition to a fully focused consumer company operating in nutrition, health, and beauty. Including the prior Feed Enzymes transaction, the total enterprise value of the ANH divestment amounts to €3.7 billion.
“Today marks the final step in that journey,” said Dimitri de Vreeze, Chief Executive Officer of dsm-firmenich. “This transaction reflects our commitment to accelerating growth and creating long-term value for all stakeholders.”
Structure of the ANH Divestment
Two Standalone Companies
Following the transaction, the ANH business will be separated into two standalone companies, both headquartered in Kaiseraugst, Switzerland:
- The Solutions Company, comprising Performance Solutions, Premix, and Precision Services
- The Essential Products Company, comprising Vitamins, Carotenoids, and Aroma Ingredients
Together, these entities are referred to as the ANH Companies. dsm-firmenich will retain a 20% equity stake in each. The companies are expected to continue working closely together, particularly in vitamin supply for the animal nutrition value chain.
ANH generated annualized net sales of approximately €3.5 billion in 2025 and employs around 8,000 people globally. Products such as Bovaer® and Veramaris™ will remain part of dsm-firmenich following the divestment.
Financial and Capital Allocation Implications
dsm-firmenich expects to receive approximately €1.2 billion at closing, including an estimated €0.6 billion in net cash proceeds, €0.5 billion in transferred debt and liabilities, and €0.1 billion in the form of a vendor loan note. The company will also provide the Essential Products Company with a loan facility of up to €450 million, with additional liquidity support of up to €115 million if required.
The company plans to launch a €0.5 billion share repurchase program in the first quarter of 2026 and has adopted a “stable to preferably rising” dividend policy, targeting a stable dividend of €2.50 per ordinary share with progressive increases over time.
The divestment will result in a non-cash impairment of approximately €1.9 billion in 2025 and is expected to incur around €0.2 billion in cash tax, transaction, and separation costs in 2026.
Strategic Rationale and Outlook For CVC & dsm-firmenich
Steven Buyse, Managing Partner at CVC, said the transaction creates an opportunity to establish two focused leaders in the animal nutrition and health sector. He noted that both businesses offer potential for value creation through innovation, operational efficiency, and global customer proximity.
The transaction is expected to close by the end of 2026, subject to regulatory approvals, employee consultation processes, and the completion of the separation into standalone entities. dsm-firmenich will report its full-year 2025 results on February 12, 2026, reflecting the reclassification of ANH as discontinued operations.
According to dsm-firmenich, the divestment positions the company to fully concentrate on its consumer-focused portfolio while enabling the ANH businesses to pursue independent growth strategies under new ownership.
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