Apollo, CVC Compete for €3B DSM-Firmenich Carve-Out Deal

Key Takeaways

Sector: Consumer.
Geography: Netherlands, Switzerland.

Analysis

CVC Capital Partners and Apollo Global Management are among the final contenders to acquire the animal nutrition unit of DSM-Firmenich, a business that could be valued at up to €3 billion ($3.25 billion USD), according to Dutch financial daily Financieele Dagblad. Dutch agribusiness group Nutreco is also in the running, with all final bids expected to be submitted by 24 July 2025.

The planned divestment is part of DSM-Firmenich’s strategic realignment, which aims to exit volatile and lower-margin segments such as vitamins and animal feed. The company is refocusing its business around fragrances, flavours, and beauty ingredients, a direction it has emphasized since completing its merger in May 2023 between Dutch firm DSM and Swiss fragrance giant Firmenich.

This potential sale is poised to be one of the largest private equity carve-outs in Europe this year, attracting interest from major financial sponsors amid a surge in portfolio reshaping by large corporates. DSM-Firmenich is said to be working with advisers on the process and hopes to finalize the deal by the end of summer 2025.

The animal nutrition division has historically been a key contributor to DSM's revenues, offering vitamin blends, enzymes, and feed additives for livestock and aquaculture. However, the unit has faced growing margin pressures from commodity price volatility, regulatory shifts, and global oversupply — particularly in vitamins. These headwinds have led DSM-Firmenich to prioritize divestment and reallocate capital toward premium, science-driven growth segments.

While DSM-Firmenich has declined to comment publicly, the outcome of this auction will be closely watched across the European M&A landscape, particularly among funds looking to deploy capital into carve-out opportunities with potential for operational improvement.

Both CVC and Apollo bring significant experience in complex carve-outs and industrial assets, with a history of investing in businesses undergoing transformation or restructuring. Nutreco, a subsidiary of SHV Holdings, represents a strong strategic buyer and could benefit from direct synergies, given its complementary position in global animal nutrition and feed production.

The sale reflects a broader trend in private equity dealmaking in 2025, as firms increasingly pursue scale assets in the mid-to-large-cap segment, driven by the search for platform growth, consolidation plays, and resilient consumer demand trends in food security and health.