PE Firms Said to Study DSM-Firmenich’s €3 Billion Unit

(Bloomberg) — Several private equity firms are studying DSM-Firmenich AG’s animal nutrition and health business, which could be valued at about €3 billion ($3.2 billion) in a deal, according to people familiar with the matter. 

Apollo Global Management Inc., Bain Capital, CVC Capital Partners and Lone Star Funds are among those exploring possible offers for the business, the people said. Dutch animal nutrition firm Nutreco NV and agricultural commodity traders Archer-Daniels-Midland Co. and Cargill Inc. have also been invited to bid, the people said, asking not to be identified as the information is private.

Amsterdam-listed DSM-Firmenich is working with UBS Group AG and Piper Sandler Cos. to gauge interest in the animal health unit, the people said. The company last year said it’s considering the sale of the business in an attempt to reduce its exposure to a deteriorating vitamin market. It plans to carve out the unit in 2025.

DSM-Firmenich, which has dual headquarters in the Netherlands and Switzerland, is looking to collect indicative bids for the animal health business on April 17, the people said. Deliberations are ongoing and may not lead to a transaction, they added. Representatives for DSM-Firmenich, ADM, Apollo, Bain, CVC, Lone Star, Nutreco, UBS and Piper Sandler declined to comment, while Cargill didn’t respond to requests for comment.

The company was formed in 2023 following the merger of Dutch chemicals company Royal DSM NV and Swiss ingredients maker Firmenich International SA. The combined entity caters to large consumer groups that want ingredient combinations that meet a range of criteria in taste, smell and functionality, as well as beauty companies seeking functional skincare ingredients.

The vitamin business under the animal nutrition and health unit is vulnerable to competition from Chinese rivals that are able to dominate the global market through lower costs. However, the animal health unit reported €3.32 billion sales in 2024, a 3% rise from the previous year. The other parts of the business up for sale include specialty ingredients for animal nutrition and pre-blended solutions.

–With assistance from Charlotte Hughes-Morgan.

(Updates ADM’s comment in fourth paragraph and adds more details about the animal health unit in last paragraph.)

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