Private equity firm CVC Capital Partners is close to acquiring DSM-Firmenich's animal nutrition and health business. The deal is valued at approximately $2.6 billion. Final terms and deal structure are being worked out, with an announcement expected soon. DSM-Firmenich will retain a minority stake after completion of the sale, which is part of a broader strategic shift.

This potential sale is part of DSM-Firmenich's plan to reduce its exposure to the global vitamins market, which faces pressure from Chinese competitors. In the first half of 2025, the animal health unit generated $2.1 billion in net sales, a 14% increase year-over-year. The company previously sold its stake in the Feed Enzymes Alliance.

CVC has been competing with other firms, including Apollo Global Management, for the asset. The auction's advanced stage suggests a deal is imminent, though delays remain possible. This move highlights continued private equity interest in the animal health sector, a market with steady growth prospects.

Why does this matter? The deal reflects ongoing portfolio adjustments within DSM-Firmenich and the valuation underscores the animal health market's resilience. Investors will watch for the final terms and how CVC plans to grow the business. The sale could signal further consolidation in the animal health space.