Leading global law firm, Baker McKenzie, has advised Novonesis on its EUR1.5 billion acquisition of dsm-firmenich’s share of the Feed Enzyme Alliance. Novonesis and dsm-firmenich reached an agreement to dissolve their Feed Enzyme Alliance in exchange for a total cash consideration of EUR1.5 billion.
After more than 25 years of successful collaboration, a strategic repositioning at dsm-firmenich allowed this opportunity to materialise whereby Novonesis will take over dsm-firmenich’s sales and distribution activities. This acquisition is aligned with Novonesis’ growth strategy and expands its presence across the animal biosolutions value chain. The transaction is subject to customary regulatory clearances.
Driving the complete value chain: The strategically important acquisition will vertically integrate the complete value chain of the Alliance, adding dsm-firmenich’s sales and distribution activities alongside Novonesis’ existing product innovation and production capabilities.
Enhances leading position in animal biosolutions: Novonesis, through the successful combination of Novozymes and Chr. Hansen, is now an industry leader in animal biosolutions with one consolidated go-to-market model and leading technological know-how. With this transaction, Novonesis will have a greater customer reach and a broader offering of market leading biosolutions, combining enzymes and probiotics, for both animal nutrition and health.
Attractive growth potential, further enhanced by revenue synergies: This acquisition will accelerate Novonesis’ sales growth of animal biosolutions by a low-single-digit CAGR above market growth while also delivering adj. EBITDA margin accretion for the group. The attractive financial profile of the acquired business is enhanced through harvesting growth synergies and streamlining operations.
Led by Global Head of M&A, Jannan Crozier, London M&A Partner, Robert Gray and Novonesis relationship partner Gavin Bushell, the Baker McKenzie team included:
• Corporate M&A: Andrew Tyau (Senior Associate), George Ewen (Senior Associate), Kate Bromley (Senior Associate), Indhu Birdy (Senior Associate), Eli Clinton-Davis (Associate) – London; Matthias Trautmann (Partner) and Cathrin Marxer (Senior Associate) – Zurich; Rebecca Kuijpers-Zimmerman (Partner), Mohammed Almarini (Partner) and Philip Lückmann (Associate) – Amsterdam
• Competition: Tom Jenkins (Partner), Victor Saint-Cast (Senior Associate) – Brussels
• Commercial: Daniel Relton (Senior Associate), Helen Griffiths (Associate) – London
• Employment: Kim Sartin (Partner), Annabel Mackay (senior counsel), Cecilie Justesen (Senior Associate), Jonathan Sharp (Partner), Danielle Klinger (Of Counsel) – London
• IP: Ash von Schwan (Senior Associate), Bryan Poon (Associate) - London
• Tax: Alistair Craig (Partner), Rohit Karamchandani (Senior Tax Advisor), Fewa Olu-Martins (Associate)
• Regulatory: Rachel MacLeod (Senior Associate), Samuel Ashford (Associate)
Commenting on the transaction, Jannan Crozier said: “We are pleased to have supported Novonesis on this significant transaction, which strengthens Novonesis’ position in the animal biosolutions market. This deal also underscores our cross-border and cross-practice capabilities and demonstrates our ability to act on high-profile deals and deliver exceptional value to our clients.”