The animal nutrition industry is witnessing a significant shift as Novonesis finalizes the acquisition of DSM-Firmenich's stake in the Feed Enzymes Alliance. This strategic move reflects both companies' dedication to strengthening their market presence and responding to evolving global demands. The deal, valued at €1.5 billion, underscores the robust performance of feed enzymes within the broader livestock sector. With an annual net sales contribution of approximately €300 million in 2024, the segment has demonstrated its pivotal role in supporting sustainable growth in animal nutrition.
A key outcome of this transaction is the establishment of a long-term commercial partnership between Novonesis and DSM-Firmenich’s Animal Nutrition & Health division. This collaboration will ensure the continued distribution of high-quality feed enzymes through an extensive premix network. As global protein demand surges due to population growth and shifting dietary trends, manufacturers must prioritize sourcing sustainable and transparent ingredients. The alliance between these two industry leaders aims to meet these challenges head-on, fostering innovation and sustainability in the supply chain.
This divestiture aligns with DSM-Firmenich's broader strategic realignment, initiated earlier in 2024, which includes separating its Animal Nutrition & Health business from the parent group. The decision to dissolve the Feed Enzymes Alliance came after thorough evaluation, concluding that it would be mutually beneficial for both parties. Dimitri de Vreeze, CEO of DSM-Firmenich, emphasized the success of the alliance over its 25-year tenure, expressing confidence in Novonesis's ability to lead the business forward. Ester Baiget, President and CEO of Novonesis, welcomed the expanded presence in the animal biosolutions value chain, positioning the company to deliver innovative and sustainable solutions amid growing resource constraints.
As the transaction progresses toward completion in 2025, subject to regulatory approvals, it heralds a new era of collaboration and innovation in the animal nutrition sector. This development not only solidifies the financial standing of DSM-Firmenich but also paves the way for Novonesis to drive forward with sustainable practices that benefit both customers and the environment. Together, these actions underscore the commitment of both companies to advancing the industry while addressing critical global challenges.