Feb 9 (Reuters) – Chemicals company DSM-Firmenich has agreed to sell its Animal Nutrition & Health business to CVC Capital for an enterprise value of around 2.2 billion euros ($2.6 billion), it said on Monday.
DSM-Firmenich, which will retain a 20% stake in the divested business, said it would receive about 1.2 billion euros as part of the deal, with a potential further earnout of 500 million euros.
Shares of the company fell 5.5% in early Amsterdam trading. Equity analysts from KBC and ING said the sale value and other details of the deal were disappointing.
The divestment follows the sale of DSM-Firmenich’s feed enzymes activities for 1.5 billion euros in 2025 and marks the “final strategic step” in its push to become a fully focused consumer company active in nutrition, health and beauty, it said in a press release.
The deal will result in a non-cash impairment of around 1.9 billion euros before taxes in 2025, DSM-Firmenich said. A cash tax, transaction and separation costs of 200 million euros will follow in 2026, with closing of the sale expected at the end of this year.
“While the delays to the ANH transaction and sizeable impairment are disappointing, we are glad that the sale has finally been announced and that dsm-firmenich can move forward cleanly,” ING analysts said in a note to investors.
The company also said it planned to launch a 500-million-euro share buyback programme in the first quarter of 2026.
($1 = 0.8445 euros)
(Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)
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