In a significant strategic shift, dsm-firmenich has agreed to sell its Animal Nutrition & Health (ANH) business to CVC Capital Partners for an enterprise value of approximately €2.2 billion, including potential earnouts of up to €0.5 billion. The deal, announced on , marks a pivotal move for dsm-firmenich as it refocuses its efforts on becoming a fully consumer-focused company specializing in nutrition, health, and beauty.
This divestment follows the earlier sale of dsm-firmenich’s Feed Enzymes activities to Novonesis for €1.5 billion in 2025. Combined, these transactions represent a total enterprise value of €3.7 billion for the animal nutrition components of the company. The decision reflects a broader trend within dsm-firmenich to streamline its portfolio and concentrate on areas with direct consumer impact.
The ANH business is a global provider of science-based solutions for animal nutrition and health, offering a range of products including vitamins, premixes, and feed additives designed to improve animal health, performance, and sustainability. The company’s offerings cater to livestock production across various species.
dsm-firmenich will retain a 20% equity stake in the divested ANH Companies, partnering with CVC, a leading global private markets manager. This partial ownership allows dsm-firmenich to maintain some involvement in the future success of the business while still achieving its strategic goals.
The financial implications of this sale extend beyond the immediate transaction value. Dsm-firmenich intends to initiate a share repurchase program in the first quarter of 2026, allocating €0.5 billion to buy back ordinary shares and reduce its issued capital. This move is designed to return value to shareholders.
the company has adopted a dividend policy aiming for a “stable to preferably rising” payout. Dsm-firmenich currently aims to maintain a dividend of €2.50 per ordinary share and anticipates increasing this over time, demonstrating a commitment to long-term value creation for its investors.
This series of transactions – the sale of Feed Enzymes and now ANH – represents the culmination of a strategic realignment for dsm-firmenich. The company has been actively reshaping its business to prioritize consumer-facing markets, signaling a departure from its historical involvement in animal nutrition. The move allows the company to concentrate resources on its core areas of expertise in human nutrition, health, and beauty products.
The sale to CVC Capital Partners provides ANH with the opportunity to operate as an independent entity, potentially fostering greater agility and focus within the animal nutrition sector. CVC’s expertise in private equity and its global reach could facilitate further growth and innovation for the business.
The broader implications of this deal within the animal nutrition industry remain to be seen. However, it underscores the ongoing consolidation and strategic repositioning occurring within the sector, as companies adapt to evolving market demands and consumer preferences. The focus on sustainability and improved animal welfare are likely to be key drivers of innovation in the years to come.
