dsm-firmenich has sold its 50% stake in the animal Feed Enzymes Alliance with Novonesis back to the biosolutions provider.
Through this deal, dsm-firmenich will receive around €1.4bn in cash — winding down the activity of a partnership formed more than 25 years ago.
However, the pair will continue a long-term commercial relationship, as dsm-firmenich's Animal Nutrition & Health business will be responsible for the resale of Novonesis' feed enzymes through its premix products.
dsm-firmenich estimates that its activities in this alliance generated around €300m in net sales during 2024.
"The Alliance has been a great success for both companies, establishing a global leadership position in feed enzymes," commented Dimitri de Vreeze, CEO of dsm-firmenich.
"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. At the same time, we are on track with the finetuning of our portfolio and next week we will begin the process of seeking transaction options to exit the Animal Nutrition & Health business from the Group over the course of 2025."
With the growing demand for protein globally, the team at Novonesis want to offer the industry a range of biosolutions that can cater to this desire, while also tackling the issue of land and water scarcity.
"With our now expanded presence across the animal biosolutions value chain, we are better positioned to create more value for customers with our bioslutions," added President and CEO of Novonesis, Ester Baiget.
This strategic decision by dsm-firmenich follows the company's commitment to separating its Animal Nutrition & Health business from the rest of the group — which will be operated under a new leadership team.
This transaction is expected to be completed in the course of 2025, subject to customary conditions and regulatory approvals.