dsm-firmenich Sells Animal Unit to CVC in €2.2B Deal, Pivots to Consumer

KAISERAUGST, SWITZERLAND – February 09, 2026 – dsm-firmenich today announced a definitive agreement to divest its Animal Nutrition & Health (ANH) business to private equity giant CVC Capital Partners. The transaction carries an enterprise value of approximately €2.2 billion, which includes a potential earnout of up to €0.5 billion, marking the final and most significant step in the company's transformation into a purely consumer-focused entity.

This move concludes a strategic overhaul that began with the merger of DSM and Firmenich, creating a powerhouse in nutrition, health, and beauty. The sale of ANH, which follows a €1.5 billion divestment of its Feed Enzymes activities in 2025, brings the total value realized from shedding its animal-related businesses to €3.7 billion. dsm-firmenich will not be exiting completely, however, as it will retain a 20% equity stake in the newly formed ANH companies, signaling a continued partnership with CVC.

In a move to reward shareholders, the company also unveiled plans for a new €0.5 billion share repurchase program set to begin in the first quarter of 2026 and adopted a “stable to preferably rising” dividend policy, aiming for a floor of €2.50 per share.

A Strategic Final Act

The divestment is the capstone of a multi-year effort by dsm-firmenich to streamline its portfolio and sharpen its focus. The ANH business, while a global leader in its own right with €3.5 billion in 2025 sales, has faced the volatility inherent in commodity-exposed markets, including global supply gluts and fluctuating feed demand. By divesting the unit, dsm-firmenich sheds this volatility and can now concentrate its resources on its higher-margin, higher-growth consumer segments: Perfumery & Beauty; Taste, Texture & Health; and Health, Nutrition & Care.

“Since the creation of dsm-firmenich, we have consistently delivered on every milestone in our strategic roadmap,” commented CEO Dimitri de Vreeze in a statement. “Today marks the final step in that journey, and this transaction reflects our commitment to accelerating our growth and creating long-term value for all stakeholders.”

The company’s strategic shift is clear: move away from the cyclical nature of animal feed inputs and double down on the innovation-driven consumer goods space. Interestingly, the company will retain Bovaer®, its methane-reducing feed additive, and Veramaris™, its algae-based omega-3 platform, integrating them into its remaining business units. This suggests it is holding onto specific high-tech, sustainability-focused innovations while divesting the broader, more traditional animal nutrition infrastructure.

CVC's Playbook for Value Creation

For CVC Capital Partners, the acquisition represents a significant bet on the future of animal nutrition. The private equity firm, which manages approximately €201 billion in assets, has a long history of successful corporate carve-outs. This deal marks a renewed partnership with dsm-firmenich, following a successful joint venture in 2015, ChemicaInvest, which points to a strong existing relationship and mutual trust.

CVC’s strategy involves splitting the large ANH business into two new, more agile standalone companies, both to be headquartered in Kaiseraugst, Switzerland.

1. The 'Solutions Company': This entity will focus on high-value, science-based offerings, including Performance Solutions, Premix, and Precision Services. It is positioned to be an innovation leader, tackling challenges like antimicrobial resistance and livestock emissions.
2. The 'Essential Products Company': This business will concentrate on the reliable, large-scale production of core ingredients like Vitamins, Carotenoids, and Aroma Ingredients for the feed, food, and fragrance industries.

This two-pronged approach is designed to unlock value by allowing each company to pursue a tailored strategy. The Solutions Company can focus on R&D and customer-centric services, while the Essential Products Company can optimize for production efficiency and supply chain resilience.

“This transaction represents a unique opportunity to create two new leading companies in the animal nutrition & health space,” said Steven Buyse, Managing Partner at CVC. “Both businesses offer significant potential for value creation.”

Navigating a Shifting Market

Despite the clear strategic rationale, the market's initial reaction was cautious. Shares in dsm-firmenich fell over 5% following the announcement. Analysts at Barclays noted that while the deal provides “long-needed closure” on the complex separation, investor sentiment was tempered by a share buyback program that was smaller than some had anticipated and persistent concerns about the pace of organic growth in the remaining core business.

The transaction values ANH at an implied multiple of approximately 7 times its normalized adjusted EBITDA, or 10 times when including the prior feed enzyme sale. This valuation reflects the challenging conditions in the animal nutrition sector but is seen as a fair price for achieving a major strategic objective. The reclassification of ANH's financials to discontinued operations will provide investors with a much clearer picture of the performance of the core consumer-facing business, which showed resilient 5% organic growth in restated figures.

The path forward for the two new ANH companies under CVC’s ownership will be to navigate a competitive landscape dominated by giants like Cargill and ADM, while also carving out a niche. The split allows them to do just that—one focused on cutting-edge solutions and the other on being a best-in-class essentials supplier.

The transaction is subject to regulatory approvals and employee consultation processes and is expected to be completed by the end of 2026. As part of the deal, dsm-firmenich will enter into a long-term vitamin supply agreement with the new Essential Products Company, ensuring supply security for its own human and pet food applications, and will provide a loan facility of up to €450 million to support the new entity.