Novonesis Acquires Feed Enzyme Alliance Share from DSM-Firmenich
Novonesis has reached an agreement with its partner DSM-Firmenich to dissolve the 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.
After more than 25 years of collaboration, a strategic repositioning at DSM-Firmenich allowed this opportunity to materialize, Novonesis said in a statement.
Ester Baiget, CEO of Novonesis, commented: “We are thrilled to announce the strategic acquisition of the full Feed Enzyme Alliance. Growing global protein demand, coupled with increasing land and water scarcity, requires innovative solutions. Now with an expanded presence across the animal biosolutions value chain, we are better positioned to create more value for customers with sustainable value adding biosolutions.”
“The Alliance has been a great success for both companies, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under the leadership of Novonesis, and I am pleased that the long-term commercial relationship with our Animal Nutrition & Health business will continue,” added Dimitri de Vreeze, CEO of DSM-Firmenich.
Novonesis intends to vertically integrate the complete value chain of the Alliance, adding DSM-Firmenich’s sales and distribution activities alongside its existing product innovation and production capabilities.
With this transaction the company, which emerged from the fusion of Novozymes and Chr. Hansen, will have a greater customer reach and a broader biosolutions offering, combining enzymes and probiotics, for both animal nutrition and health.
According to Novonesis, the total animal biosolutions market is projected to grow at a mid-single digit CAGR driven by growing protein demand, land scarcity and environmental concerns.
