Novonesis to acquire dsm-firmenich’s share of the Feed Enzyme Alliance 

DENMARK – Novonesis has reached an agreement with dsm-firmenich to acquire its share of the Feed Enzyme Alliance, taking over sales and distribution activities for a total cash consideration of EUR 1.5 (US$1.56) billion. 

This strategic acquisition marks a significant shift in the animal bio-solutions market, strengthening Novonesis’ position across the value chain.

The Danish biotechnology company, formed through the merger of Novozymes and Chr. Hansen, will now fully integrate the alliance’s value chain, complementing its existing innovation and production capabilities. 

The acquisition aligns with Novonesis’ long-term growth strategy, enhancing revenue growth, adjusted EBITDA margin, and adjusted EPS while unlocking potential synergies in the animal nutrition sector.

End of a 25-year partnership

For over 25 years, dsm-firmenich and Novonesis collaborated through the Feed Enzyme Alliance, developing an advanced portfolio of feed enzyme solutions for the animal feed market. 

The feed enzymes business was part of dsm-firmenich’s Animal Nutrition & Health division, now set to operate independently under new ownership. 

As part of this transition, both companies reassessed their partnership and determined that dissolving the alliance would benefit their respective strategic directions.

The dsm-firmenich assets included in the transaction generated approximately EUR 300 million in annual net sales in 2024. 

Despite the dissolution of the alliance, Novonesis will maintain a long-term commercial relationship with dsm-firmenich’s Animal Nutrition & Health business, leveraging its world-class premix network for enzyme resale.

Novonesis’ CEO, Ester Baiget, emphasised the importance of this acquisition in addressing growing global protein demand amidst increasing land and water scarcity. 

“We are thrilled to announce the strategic acquisition of dsm-firmenich’s portion of the alliance. With an expanded presence in the animal bio-solutions sector, we are better positioned to deliver innovative, sustainable, and value-adding bio-solutions to our customers,” said Baiget.

dsm-firmenich, meanwhile, expects to receive approximately EUR 1.4 (US$1.45) billion in net cash after transaction costs and capital gains tax. 

CEO Dimitri de Vreeze expressed confidence in the transition, stating, “The alliance has been a great success, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under Novonesis’ leadership. At the same time, we are on track with refining our portfolio and will begin exploring transaction options to exit the Animal Nutrition & Health business in 2025.”

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