DSM-Firmenich Reignites Talks to Divest Animal Nutrition & Health Unit Amid Strategic Shift
DSM-Firmenich has reopened the bidding process for the sale of its Animal Nutrition & Health (ANH) division, with Apollo Global Management re-entering discussions alongside other private equity firms. The division, estimated to be worth around €3 billion, has been under scrutiny for some time as the company pivots towards higher-margin sectors like flavours, fragrances, and speciality nutrition.
This renewed push to offload the ANH unit follows months of stalled negotiations. CVC Capital Partners, once seen as a frontrunner, reportedly encountered valuation disagreements, particularly around the unit’s vitamins portfolio, which has come under pressure due to market cyclicality and narrowing profit margins.
For the global dairy and livestock feed sector, the outcome of this transaction could be pivotal. DSM-Firmenich’s ANH division plays a key role in supplying feed additives, enzymes, and animal health solutions, widely used in commercial dairy production systems, including those emerging across India. A shift in ownership could herald changes in pricing strategies, supply chain efficiencies, and product availability — areas of increasing concern in an inflation-sensitive and cost-conscious market environment.
Impact on Indian Dairy and Feed Markets
With India’s commercial dairy feed industry gaining momentum, particularly in regions like Punjab, Gujarat, and Karnataka, the divestment of a major input provider could impact both price structures and accessibility. Indian dairy farmers are already grappling with rising input costs, and any potential tightening in supply or strategic reprioritisation by a new owner could disrupt market stability.
Analysts note that private equity stewardship might unlock operational efficiencies but also introduce margin-focused restructuring, including a possible narrowing of product lines or reclassification of low-margin segments. This could particularly affect the availability of specialised feed solutions and vitamin supplements, both of which are integral to dairy productivity and herd health.
Strategic Realignment at DSM-Firmenich
The ANH division has long been part of DSM’s legacy in animal health and nutrition, offering science-backed solutions to livestock producers globally. However, the company’s latest strategy reflects a deliberate move away from cyclical B2B markets, in favour of becoming a consumer innovation-driven enterprise.
DSM-Firmenich’s decision to prioritise science-led, high-growth verticals comes amid wider industry trends, where companies are realigning portfolios to reflect evolving consumer and regulatory pressures, especially in sustainability, traceability, and precision nutrition.
What Lies Ahead
Bids for the ANH division are expected in the coming weeks. As negotiations progress, stakeholders across the dairy value chain — from European feed manufacturers to Indian dairy cooperatives and commercial farm operators — will be closely watching the ripple effects of any ownership change.
In a time when the Indian dairy industry is pushing for value-added growth, enhanced feed solutions, and sustainability, the future of DSM-Firmenich’s ANH business could shape the next phase of input supply dynamics.
