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 said it would receive about 1.2 billion euros as part of the deal, with a potential further earn out of 500 million euros. It will retain a 20% stake in the divested business.
The deal follows the sale of its feed enzymes activities for 1.5 billion euros in 2025 and “marks the final strategic step for dsm-firmenich to become a fully focused consumer company active in nutrition, health, and beauty”, the company said in a press release.
The divestment, which is expected to be closed at the end of 2026, will result in a non-cash impairment of around 1.9 billion euros before taxes in 2025, with cash tax, transaction and separation costs of 200 million euros expected in 2026, DSM-Firmenich said.
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)
Brought to you by www.srnnews.com