DSM-Firmenich, Dutch-Swiss chemicals group, sells animal nutrition unit for €2.2 billion

DSM-Firmenich is selling its Animal Nutrition & Health division to investment firm CVC Capital Partners for 2.2 billion euros as the Dutch-Swiss specialty chemicals company decides to focus more on the raw materials for consumer care products and nutritional supplements, AD reports.

The business produces ingredients and vitamins used in animal feed. DSM-Firmenich put the unit up for sale about a year ago as part of its strategy to concentrate on consumer-oriented markets.

DSM-Firmenich expects to receive about 1.2 billion euros from the transaction and will retain a 20 percent stake in the divested unit. The Amsterdam AEX index includes both DSM-Firmenich and CVC Capital Partners.

Animal Nutrition & Health employs about 8,000 people and generated roughly 3.5 billion euros in revenue last year. Fewer than 200 employees work in the Netherlands. “This deal as such has no impact for them,” a DSM-Firmenich spokesperson said.

After the sale, Animal Nutrition & Health will operate as two separate companies, both based in Kaiseraugst, Switzerland. “The Solutions Company will continue to innovate and stimulate efficiency in livestock farming. The Essential Products Company will be built as a global leader in essential feed, food, and fragrance ingredients,” said CVC Managing Partner Steven Buyse.

DSM-Firmenich was formed in 2023 through the merger of Dutch chemicals company DSM and Swiss fragrance maker Firmenich. DSM was originally founded in 1902 as De Nederlandse Staatsmijnen, a state-owned coal mining company in the Netherlands.