DSM-Firmenich has agreed to sell its Animal Nutrition & Health (ANH) business to private equity firm CVC Capital Partners for an enterprise value of around €2.2 billion, as the group completes its transformation into a consumer-focused supplier of nutrition, health and beauty ingredients.
The deal, which includes a potential earnout of up to €0.5 billion, will see DSM-Firmenich retain a 20% equity stake in the divested business.
The transaction marks the final step in DSM-Firmenich’s exit from animal nutrition following the €1.5 billion sale of its feed enzymes activities to Novonesis in 2025. Combined, the divestments value the ANH portfolio at €3.7 billion.
For food and beverage manufacturers, the move underlines DSM-Firmenich’s sharpened focus on human nutrition, taste, texture, health and beauty ingredients, while restructuring its exposure to upstream animal feed markets that have faced margin pressure and volatility.
ANH generated annualised sales of around €3.5 billion in 2025 and employs approximately 8,000 people. Under the deal, the business will be split into two standalone companies based in Switzerland: a ‘Solutions Company’ covering performance solutions, premixes and precision services, and an ‘Essential Products Company’ housing vitamins, carotenoids and aroma ingredients.
DSM-Firmenich said it will enter into a long-term vitamins supply agreement with the Essential Products Company to ensure continuity and supply security for its human nutrition and pet food businesses, a key concern for food manufacturers reliant on consistent access to micronutrients.
Notably, methane-reducing feed additive Bovaer and algae-based omega-3 platform Veramaris will remain within DSM-Firmenich.
The company expects to receive approximately €1.2 billion at closing, including around €0.6 billion in net cash proceeds, with the remainder comprising debt transfers and a vendor loan note. It will also provide the Essential Products Company with loan facilities of up to €565 million to support liquidity.
DSM-Firmenich says the divestment will result in a non-cash impairment charge of around €1.9 billion in 2025, with cash tax, transaction and separation costs of approximately €0.2 billion expected in 2026.
Following the sale, the group plans to launch a €0.5 billion share buyback programme in the first quarter of 2026 and has adopted a “stable to preferably rising” dividend policy, targeting a dividend of €2.50 per share with progressive increases.
Chief executive Dimitri de Vreeze said the deal completes the company’s strategic repositioning. “We have now evolved into a fully focused consumer business in nutrition, health and beauty,” he said.
CVC said the acquisition would allow the ANH businesses to operate independently and pursue growth in animal nutrition and essential ingredients markets.
DSM-Firmenich will report its full-year 2025 results on February 12, reflecting the reclassification of ANH as discontinued operations.
Completion of the deal is expected by the end of 2026, subject to regulatory and employee consultation processes.
