dsm-firmenich Agrees to €1.5 Billion Stake Sale to Novonesis
Deal News | Feb 11, 2025 | PR Newswire Cision dsm-firmenich
In a strategic decision that marks both growth and reorganization, dsm-firmenich is set to divest its stake in the Feed Enzymes Alliance to Novonesis for €1.5 billion. This move, which aligns with a broader separation of dsm-firmenich's Animal Nutrition & Health business, allows Novonesis to enhance its portfolio with an expanded biosolutions presence. The transaction, anticipated to be finalized in 2025, will grant dsm-firmenich approximately €1.4 billion in net cash. This joint venture dissolution is a result of a mutual agreement between the two companies, who have been partners for over 25 years, to reach separate strategic benefits. The dsm-firmenich unit set for sale accounted for about €300 million in net sales in 2024. Furthermore, dsm-firmenich plans additional restructuring efforts, with intentions to exit the Animal Nutrition & Health sector entirely by 2025. CEO Dimitri de Vreeze expressed optimism for the success of the alliance under Novonesis's leadership, while Novonesis CEO, Ester Baiget, emphasized the acquisition's importance in meeting growing global demands for protein with innovative biosolutions.
Sectors
- Biotechnology
- Animal Health and Nutrition
- Corporate Finance
Geography
- Switzerland – dsm-firmenich, one of the primary companies involved in this transaction, is headquartered in Switzerland.
- Netherlands – The announcement involves dsm-firmenich, which conducts significant operations from Maastricht, Netherlands, highlighting the geographical relevance.
Industry
- Biotechnology – The article revolves around the sale of stakes in a biosolutions-focused joint venture, impacting companies operating in biotechnology and biosolutions.
- Animal Health and Nutrition – The transaction pertains to the Feed Enzymes Alliance, which is related to animal health and nutrition, indicating a direct relevance to this industry.
- Corporate Finance – The article discusses a major financial transaction involving the divestiture of company assets, relevant to corporate finance sectors dealing with mergers, acquisitions, and asset sales.
Financials
- €1.5 billion – Total consideration for the sale of dsm-firmenich's stake in the Feed Enzymes Alliance to Novonesis.
- €1.4 billion – Expected net cash to be received by dsm-firmenich after transaction costs and taxes.
- €300 million – Approximate annual net sales represented by the dsm-firmenich operations involved in the transaction in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| dsm-firmenich | Selling Company | Company | A global leader in nutrition, health, and beauty solutions, involved in the sale of its stake in the Feed Enzymes Alliance. |
| Novonesis | Bidding Company/Buyer | Company | A global company specializing in biosolutions, acquiring dsm-firmenich's stake in the Feed Enzymes Alliance. |
| Dimitri de Vreeze | CEO of dsm-firmenich | Person | Chief Executive Officer of dsm-firmenich, providing insights into the strategic sale of company assets. |
| Ester Baiget | President and CEO of Novonesis | Person | President and CEO of Novonesis, detailing the strategic acquisition and its importance for the company. |