The nutrition, health and beauty company dsm-firmenich has announced it has agreed with CVC to divest its Animal Nutrition & Health ("ANH") business for an enterprise value of about €2.2bn, which includes an earnout of up to €0.5bn.
dsm-firmenich will retain a 20% equity stake in the divested ANH Companies, in partnership with CVC.
This transaction follows the sale of the Feed Enzymes activities to Novonesis for €1.5bn in 2025 and marks the final strategic step for dsm-firmenich to become a fully focused consumer company active in nutrition, health and beauty.
The total enterprise value of ANH, including the prior sale of the Feed Enzymes activities, represents €3.7bn.
The company intends to launch a new share repurchase programme to buy back ordinary shares with an aggregate market value of €0.5bn and reduce its issued capital.
The programme is planned to commence in Q1 2026.
ANH is a global provider of science-based animal nutrition and health solutions.
The business offers products ranging from vitamins to premixes to feed additives that improve animal health, performance, feed efficiency and sustainability across livestock production.
ANH generated annualised net sales of approximately €3.5bn in 2025, with around 8000 employees.
The divestment includes all ANH activities: Performance Solutions, Premix, Precision Services, as well as Vitamins, Carotenoids and Aroma Ingredients.
As previously communicated, Bovaer and Veramaris remain part of dsm-firmenich.
ANH will be split into two new standalone companies, both based in Kaiseraugst, Switzerland: the "Solutions Company", including Performance Solutions, Premix and Precision Services and the "Essential Products Company", including Vitamins, Carotenoids and Aroma Ingredients (jointly referred to as the "ANH Companies").
These companies will continue to work closely together, especially with regard to the vitamin supply in the animal nutrition and health value chain.
dsm-firmenich will retain a 20% equity stake in both the Essential Products Company and the Solutions Company.
dsm-firmenich will enter into a long-term vitamins supply agreement with the Essential Products Company to ensure continuity and supply security in human and pet food applications.
This transaction values ANH at an enterprise value ("EV") of €2.2bn, including an earnout of up to €0.5bn, implying a 7x EV/Adjusted EBITDA multiple, based on ANH’s normalised Adjusted EBITDA.
Including the earlier sale of the Feed Enzymes activities, the overall ANH divestment value represents a €3.7bn enterprise value, implying a 10x EV/Adjusted EBITDA multiple.
The transaction is expected to be completed at the end of 2026 and is subject to conditions, including regulatory approvals, the finalisation of all required employee consultation processes and the creation and separation of a standalone Essential Products Company and a standalone Solutions Company by dsm-firmenich.
Dimitri de Vreeze, CEO of dsm-firmenich, commented: "Since the creation of dsm-firmenich, we have consistently delivered on every milestone in our strategic roadmap."
"From building a unique, integrated company to shaping a finely tuned portfolio with distinctive capabilities, we have now evolved into a leading consumer business focused on nutrition, health and beauty."
"Today marks the final step in that journey and this transaction reflects our commitment to accelerating our growth and creating long-term value for all stakeholders."
"At the same time, this agreement opens an exciting new chapter for ANH, enabling it to thrive and realise its full potential."
Steven Buyse, Managing Partner at CVC: "We are delighted to partner with dsm-firmenich and the ANH team."
"This transaction represents a unique opportunity to create two new leading companies in the animal nutrition & health space."
"Both businesses offer significant potential for value creation. The Solutions Company will continue to drive innovation and efficiency in animal farming, delivering tailored solutions with high proximity to its global customer base."
"The Essential Products Company will be built as a resilient global leader in essential feed, food and fragrance ingredients, providing customers with a reliable, high-quality supply based on an independent and highly integrated value chain."
"Both companies will work closely together to create maximum value for the customer."
The transaction represents the second partnership between dsm-firmenich and CVC. In 2015, DSM created the successful joint venture ChemicaInvest, in which CVC also held a majority.