DSM-Firmenich Divests Animal Nutrition & Health Business

Overview

dsm-firmenich, renowned for its innovations in nutrition, health, and beauty, has signed an agreement with CVC, a leading global private markets manager, to divest its Animal Nutrition & Health (ANH) business. The transaction values the ANH business at approximately €2.2 billion, which includes an earnout possibility of up to €0.5 billion. Following the divestment, dsm-firmenich will retain a 20% equity stake in the newly independent ANH Companies.

Strategic Context

This divestment follows the earlier sale of the Feed Enzymes activities to Novonesis for €1.5 billion in 2025. It marks a significant step for dsm-firmenich to focus on becoming a fully consumer-oriented company, specialized in nutrition, health, and beauty. The combined enterprise value of the ANH business, including the prior sale, reaches €3.7 billion.

Shareholder Returns and Dividend Policy

dsm-firmenich plans to initiate a new share repurchase program worth €0.5 billion to buy back ordinary shares and reduce its issued capital. This is expected to commence in Q1 2026. Furthermore, the company is committed to providing consistent dividends through a ‘stable to preferably rising’ policy. This aims to maintain a dividend of €2.50 per ordinary share with plans for gradual increases over time.

Highlights of the ANH Business

• ANH specializes in science-based animal nutrition and health solutions, offering various products that enhance animal health, performance, feed efficiency, and sustainability across livestock production.
• The business generated approximately €3.5 billion in annualized net sales in 2025 and employed about 8,000 individuals.
• The divestment includes all ANH activities: Performance Solutions, Premix, Precision Services, as well as Vitamins, Carotenoids, and Aroma Ingredients. Notably, Bovaer® and Veramaris™ will remain with dsm-firmenich.
• ANH will be split into two standalone companies based in Kaiseraugst, Switzerland: the “Solutions Company” and the “Essential Products Company.”
• As part of the transaction, dsm-firmenich will maintain a long-term vitamins supply agreement to ensure continuity in human and pet food applications.

Financial Implications

This transaction values the ANH business at €2.2 billion, implying a 7x EV/Adjusted EBITDA multiple based on normalized Adjusted EBITDA. With the earlier sale included, the overall valuation represents a 10x EV/Adjusted EBITDA multiple. dsm-firmenich anticipates receiving approximately €1.2 billion post-transaction closure, comprising estimated net cash proceeds, debt transfers, and a vendor loan note.

Future Outlook and Impairments

The anticipated completion date for this transaction is at the end of 2026, pending regulatory approvals and employee consultation processes. The divestment will lead to a non-cash impairment of about €1.9 billion in 2025 before taxes, alongside an expectation of incurring cash tax, transaction, and separation costs of €0.2 billion in 2026.

Leadership Perspectives

Dimitri de Vreeze, CEO of dsm-firmenich, expressed: “This transaction reflects our commitment to accelerating our growth while adding long-term value for all stakeholders. This is a transformative step in our journey.”

Steven Buyse, Managing Partner at CVC, added: “We are excited to partner with dsm-firmenich and the ANH team. This transaction enables us to develop two leading companies in the animal nutrition and health sector.”

Investor Engagement

Today, dsm-firmenich will host a webcast for investors and analysts to discuss this significant development. Additional insights and future financial performances will be published on February 12, 2026.

About dsm-firmenich

As innovators in nutrition, health, and beauty, dsm-firmenich is committed to creating what is essential for life while fostering sustainability. Operating in nearly 60 countries, the company serves a diverse global community with solutions derived from natural ingredients and advanced scientific expertise.

About CVC

CVC is a prominent global private markets manager, focusing on private equity, credit, and infrastructure investments. With operations in 30 locations worldwide, CVC manages approximately €201 billion in assets, partnering with top-tier institutional investors.

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