DSM-Firmenich Revives Auction for Animal Nutrition Unit, Apollo Enters Race Against CVC
DSM-Firmenich AG has revived the auction for its animal nutrition and health unit, inviting Apollo Global Management Inc. back to the table. This development creates a two-horse race with CVC Capital Partners Plc, who had been the sole remaining bidder. The sale has been delayed due to disagreements over price and concerns about the challenging vitamins part of the business.
The animal health unit reported €3.32 billion of sales in 2024, a 3% rise from the previous year. Despite this growth, the sale has been delayed due to price disagreements and concerns about the gold part of the business. Other parts up for sale include specialty ingredients for animal nutrition and pre-blended solutions.
DSM-Firmenich AG initially aimed to sell the business for about €3 billion ($3.2 billion). However, the price could be lower based on current discussions. Both Apollo and CVC want DSM to separate or restructure the gold unit, while DSM prefers to sell the entire business in one swoop. A decision on the winner and structure could be made in the coming weeks if the deal doesn't fall apart.
The re-entry of Apollo into the auction for DSM-Firmenich AG's animal nutrition and health unit adds a new dynamic to the negotiations. With both Apollo and CVC vying for the business, the outcome and structure of the deal remain uncertain. The final decision could be made in the coming weeks, with the price potentially lower than the initially targeted €3 billion.
