April 12, 2024

HEERLEN, NETHERLANDS — Describing “unprecedented” challenges in the vitamins market, DSM-Firmenich said it will begin the process of separating out its Animal Nutrition & Health (ANH) business from the group, allowing the segment to pursue its potential through a separate ownership structure.

In its Feb. 15 announcement, DSM-Firmenich said separating out ANH from the group would minimize the overall company’s exposure to vitamins earnings volatility and reduce capital intensity in line with its long-term strategy.

With a different ownership structure, DSM-Firmenich said ANH would strengthen its distinctive position as a global leader with its unique and integrated combination of vitamins, premixes, performance solutions and precision nutrition. The company expects to be in a position to separate the business during 2025. 

“Our purpose at DSM-Firmenich is to bring ‘Progress to Life,’ as we boost innovation in premium, high-growth and resilient segments,” said Dimitri de Vreeze, chief executive officer of DSM-Firmenich. “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.”

ANH is a global ingredients provider the company said is positioned to support a growing global population through more sustainable animal farming. Headquartered in Kaiseraugst, Switzerland, ANH last year delivered more than €3 billion in revenues with approximately 6,000 employees. 

DSM-Firmenich said a separation would strengthen its leadership position in the global nutrition, health and beauty markets. By fully focusing on Perfumery & Beauty (P&B); Taste, Texture & Health (TTH); and Health, Nutrition & Care (HNC), the company said it can further develop its complementary world-class scientific research, technologies and manufacturing. Full focus on these businesses is expected to enhance their commercial potential and synergies, supporting an attractive and consistent growth outlook alongside robust margins.

The extent of the ANH business expected to be separated out is being reviewed as part of this process. Given Bovaer’s role in reducing emissions across the dairy industry, an important segment for TTH, and Veramaris’ significant potential in dietary supplements, it is expected that both businesses would remain part of the group.

Ivo Lansbergen, president of ANH, will continue to lead the business. He joined in 1997 and has led ANH since 2019.

“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,” Lansbergen said. “It is an exciting prospect for our world class team to pursue our ANH strategy.”

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