DSM-Firmenich Nears €2.2B Deal with CVC for Animal Unit

Deal Nears for Animal Nutrition Division

DSM-Firmenich is reportedly close to finalizing an agreement to sell its Animal Nutrition and Health business to private equity firm CVC Capital Partners. The potential transaction values the business unit at approximately €2.2 billion, or $2.6 billion, with an official announcement possible within days.

Transaction Overview

According to sources familiar with the matter, the deal follows a competitive bidding process. While negotiations are at an advanced stage, the final terms are still being discussed, and the deal could still face delays. As part of the arrangement, DSM-Firmenich is expected to retain a stake in the business, though the exact structure has not been confirmed.

Impact on the Market

This potential sale signals a strategic move by DSM-Firmenich to streamline its portfolio and focus on its core operations. For the private equity sector, it highlights continued strong interest in the stable and growing animal health market. The bidding competition, which also involved Apollo Global Management, suggests healthy valuations within the industry.

Deal Outlook

While the agreement with CVC appears likely, the market awaits a definitive announcement to understand the final terms and strategic implications. The conclusion of this deal will provide clarity on DSM-Firmenich's future direction and CVC's expanding footprint in the nutrition sector. Key factors to watch include the size of the retained stake and the final purchase price.

FAQ

Q: Who are the main parties involved?
A: DSM-Firmenich is the seller, and CVC Capital Partners is the reported buyer.

Q: What is the estimated value of the deal?
A: The business is valued at approximately €2.2 billion ($2.6 billion).

Q: Is the deal finalized?
A: No, it is in the final stages of negotiation but is not yet finalized and could still be altered or delayed.

Source: Investing.com