Novonesis Acquires Stake in Feed Enzyme Alliance from DSM-Firmenich

Novonesis has reached an agreement with its partner DSM-Firmenich to dissolve Feed Enzyme Alliance and take over its sales and distribution activities for a total cash payment of €1.5 billion. The transaction is subject to customary closing conditions.

In a statement, Novonesis said that after more than 25 years of cooperation, the strategic repositioning of DSM-Firmenich has made this opportunity possible.

"We are delighted to announce the strategic acquisition of the entire Feed Enzymes Alliance," said Ester Baiget, CEO of Novonesis. "The growing global demand for protein, coupled with increasing land and water scarcity, requires innovative solutions. Now, with our expanded presence across the animal biosolutions value chain, we are better positioned to create more value for our customers, delivering sustainable value-added biosolutions."

DSM-Firmenich CEO Dimitri de Vreeze added: "This alliance has been a huge success for both companies, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under Novonesis' leadership and I am pleased that our long-standing commercial relationship with the Animal Nutrition & Health business will continue."

Novonesis intends to vertically integrate the full value chain of the Alliance, adding DSM-Firmenich's sales and distribution activities to its existing product innovation and production capabilities.

With this transaction, the combined company of Novozymes and Chr. Hansen will have a larger customer reach and a broader portfolio of biosolutions, combining enzymes and probiotics for animal nutrition and health.