DSM-Firmenich has announced the initiation of a process to separate its Animal Nutrition & Health (ANH) business from the rest of the group.
According to the Swiss-Dutch ingredients specialist, its ANH business is driven by “different dynamics” to the rest of the group. Unprecedented challenges within the vitamins market have made this more apparent, the company said in a statement revealing the plans. Factors driving this include unprecedented cyclical pressure on vitamin prices in the animal markets.
Headquartered in Kaiseraugst, Switzerland, ANH aims to help its customers to deliver healthy animal proteins while leveraging data to make animal farming more sustainable, productive and transparent.
DSM-Firmenich believes that the ANH business’ full potential could be realised through a different ownership structure, for which all potential separation options will be considered. The company said it expects to separate the business in the course of 2025.
By carving out the ANH business, DSM-Firmenich would focus fully on its Perfumery & Beauty; Taste, Texture & Health; and Health, Nutrition & Care divisions. Full focus on these businesses is expected to enhance commercial potential and synergies, supporting “consistent growth outlook alongside robust margins”. The perimeter of the ANH business expected to be separated is being reviewed.
DSM-Firmenich said that its animal health brands Bovaer and Verameris would likely remain part of the group. This is due to the feed supplement Bovaer’s role in reducing emissions across the dairy industry (an important segment for Taste, Texture & Health), and the algal oil Verameris’ potential in dietary supplements.
ANH delivered more than €3 billion in revenues last year, with approximately 6,000 employees. DSM-Firmenich said it remains committed to the business and its team during the transition process. Ivo Lansbergen, who joined the company in 1997 and has led ANH since 2019, will continue in his role.
He commented: “We have an amazing team within ANH that has built a global leader with scale, a unique portfolio and unrivalled innovation capabilities to help our customers tackle some of the most challenging food security issues and with a strategy that is strongly focused on making animal farming sustainable”.
Dimitri de Vreeze, CEO of DSM-Firmenich, commented: “ANH is a fantastic business that over the years we have built to be a true leader in the industry. This is a difficult moment, but we strongly believe that a separation would be better for both businesses and their employees, and ultimately generate better value for all our stakeholders.”
By Melissa Bradshaw
Source: foodbev.com
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