Earnings Release • Feb 11, 2025
Earnings Release
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Novonesis has reached an agreement with dsm-firmenich to dissolve the Feed Enzyme Alliance and take over its sales and distribution activities, in exchange for a total cash consideration of EUR 1.5 billion. After more than 25 years of successful collaboration, a strategic repositioning at dsm-firmenich allowed this opportunity to materialize. This acquisition is aligned with Novonesis' growth strategy and expands its presence across the animal biosolutions value chain. Financially, this transaction is accretive to revenue growth, adjusted EBITDA margin and adjusted EPS excl. amortization, with attractive revenue synergies.
Ester Baiget, CEO of Novonesis comments: "We are thrilled to announce the strategic acquisition of the full Feed Enzyme Alliance. Growing global protein demand, coupled with increasing land and water scarcity, requires innovative solutions. Now with an expanded presence across the animal biosolutions value chain, we are better positioned to create more value for customers with sustainable value adding biosolutions. This transaction underscores our commitment to driving growth, while also improving our EBITDA margin."
Dimitri de Vreeze, CEO of dsm-firmenich says: "The Alliance has been a great success for both companies, establishing a global leadership position in feed enzymes. I am confident that this business will continue to thrive under the leadership of Novonesis, and I am pleased that the long-term commercial relationship with our Animal Nutrition & Health business will continue."
Driving the complete value chain: Novonesis will vertically integrate the complete value chain of the Alliance, adding dsm-firmenich's sales and distribution activities alongside its existing product innovation and production capabilities. The fully integrated business will be better equipped to serve existing and new customers with strong insights into core markets and product technologies enhancing R&D and unleashing further innovation.
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: The total animal biosolutions market is projected to grow at a mid-single digit CAGR driven by growing protein demand, land scarcity and environmental concerns. 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.
February 11, 2025 Company announcement No. 2
Conference call
February 11, 2025 8.30 CET Please pre-register for the call here. Webcast
Novozymes A/S, part of Novonesis Group Krogshoejvej 36 2880 Bagsvaerd, Denmark
Novonesis is a global company leading the era of biosolutions. By leveraging the power of microbiology with science, we transform the way the world produces, consumes and lives. In more than 30 industries, our biosolutions are already creating value for thousands of customers and benefiting the planet. Our 10,000 people worldwide work closely with our partners and customers to transform business with biology.
The Feed Enzyme Alliance was founded on a strong combination of two companies where Novonesis has contributed with extensive expertise in high-quality enzyme development and dsm-firmenich has offered a wide-reaching sales force with access to key industry customers. A strong relationship, business performance and high level of trust has made the Alliance a sound business for both parties.
As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world's growing population to thrive. With its comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, the company work to create what is essential for life, desirable for consumers, and more sustainable for the planet. Dsm-firmenich is a Swiss-Dutch company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, the company bring progress to life every day, everywhere, for billions of people. www.dsmfirmenich.com.
Novonesis is exclusively advised by Gordon Dyal & Co and financing is obtained through BNP Paribas. Legal advisor is Baker McKenzie.
Novonesis will host a conference call on February 11, 2025, at 8.30 CET to discuss this announcement. Supplemental material that may be referenced during the teleconference will subsequently be available at Novonesis' website.
| Tobias Bjorklund | +45 3077 8682 | [email protected] |
|---|---|---|
| Anders Enevoldsen | +45 5350 1453 | [email protected] |
| Katrine Spedtsberg Poulsen | [email protected] | |
| Media Relations | ||
| Benjamin Hjorth | +45 3077 2731 | [email protected] |
This announcement includes forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the control of the combined group and all of which are based on the combined group's current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "aim", "annualized", "anticipate", "assess", "assume", "believe", "continue", "could", "estimate", "expect", "goal", "hope", "intend", "may", "objective", "plan", "position", "potential", "predict", "project", "risk", "seek", "should", "target", "will" or "would" or the highlights or the negatives thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and other documents regarding the combination and include statements that reflect the combined group's intentions, beliefs, or current expectations and projections about their respective future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, targets, strategies, and opportunities, as well as the markets in which they respectively operate. These forward-looking statements and other statements contained in this announcement regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the combined group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements. Forward-looking statements in this announcement speak only as of the date of this announcement. The information contained in this announcement is subject to change without notice, and, except as required by applicable laws and regulations, the combined group expressly disclaims any obligation or undertaking to update or revise the forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based, and nor does it intend to. Investors should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement. As a result of these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual future events or otherwise.
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