Novonesis has announced a major acquisition, taking full control of the Feed Enzyme Alliance by purchasing DSM-Firmenich’s share for EUR 1.5 billion. This move marks the end of a 25-year partnership and aligns with Novonesis’ strategy to expand its presence in the animal biosolutions sector.
Strategic Implications for the Swine Industry
This acquisition is significant for the swine industry, as Novonesis strengthens its position in animal nutrition. By integrating sales and distribution into its existing operations, the company aims to enhance innovation in enzyme and probiotic solutions for livestock feed.
Ester Baiget, CEO of Novonesis, emphasized the importance of this step: “Growing global protein demand and environmental constraints require innovative solutions. With this acquisition, Novonesis is better positioned to deliver value through sustainable biosolutions in animal nutrition.”
Market Impact and Growth Potential
The global animal biosolutions market, driven by increasing protein demand and sustainability challenges, is expected to grow at a mid-single-digit CAGR. With this acquisition, Novonesis projects above-market growth and increased EBITDA margins.
- Revenue Growth: The transaction will contribute approximately 3% to Novonesis’ total revenue in the first full year.
- Market Leadership: The integration of DSM-Firmenich’s sales and distribution activities will strengthen Novonesis’ leading position in the feed enzyme sector.
- Synergies: By combining enzymes and probiotics, the company will enhance product innovation and customer solutions in animal health and nutrition.
Financial Overview
- EUR 1.5 billion cash purchase for DSM-Firmenich’s stake in the Feed Enzyme Alliance.
- Projected 3% revenue growth contribution at the group level.
- ~70MEUR adjusted EBITDA contribution in the first year, leading to margin improvements.
- 100% debt-financed acquisition with a strong cash conversion strategy to ensure financial stability.
- No expected impact on dividend payouts.
Looking Ahead
With regulatory approvals expected in 2025, this acquisition positions Novonesis for continued growth and innovation in swine and broader livestock nutrition. The company will maintain its supply relationship with DSM-Firmenich while focusing on expanding its biosolutions portfolio to meet evolving industry demands.
As the swine industry adapts to evolving nutritional and sustainability needs, Swine Web will continue to monitor how this acquisition influences feed technology and market trends.
