Novonesis acquires Feed Enzymes Alliance from dsm-Firmenich in US$1.55B deal

DENMARK – Novonesis has acquired the Feed Enzymes Alliance from dsm-Firmenich in a US$1.55 billion deal, marking the end of a 25-year partnership. 

The transaction signals a strategic shift for DSM-Firmenich as it moves to separate its Animal Nutrition & Health (ANH) business and focus on food and nutrition ingredients. 

Reported by the company, the sale is expected to generate approximately US$1.44 billion in net cash after deducting transaction costs and capital gains tax.

The company has stated that starting next week, it will begin seeking buyers or strategic alternatives for its ANH division as part of its portfolio restructuring. 

According to dsm-firmenich CEO Dimitri de Vreeze, the alliance has been a success, securing a leading 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 ANH business will continue,” he said.

The transaction is subject to customary regulatory approvals and is expected to close in 2025. 

A report by dsm-firmenich highlights that the sale will provide financial flexibility and reinforce its ability to innovate in nutrition, health, and beauty.

For Novonesis, acquiring full ownership of the Feed Enzymes Alliance strengthens its leadership in biosolutions and enhances its ability to drive innovation in feed enzyme technologies. 

The company has revealed that the global demand for protein, combined with increasing land and water constraints, calls for advanced solutions in animal nutrition. 

“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,” said Ester Baiget, president and CEO of Novonesis.

The agreement includes dsm-firmenich’s feed enzymes business, which has been a key segment of its ANH division and generated approximately US$3.1 million in net sales in 2024.

The companies report that despite dissolving the alliance, they will maintain a long-term commercial relationship, ensuring the continued re-sale of feed enzymes through dsm-firmenich’s premix network.

The Feed Enzymes Alliance, established over 25 years ago, has played a significant role in developing innovative enzyme solutions for the animal nutrition industry. 

However, dsm-firmenich’s decision to streamline its portfolio led to the conclusion that dissolving the partnership was the best strategic move for both parties.