DSM-Firmenich
Note: This is a daily stock update and the information stands true as of 09/02/26, 09:00 CET.
Company Update:
Expert Opinion:
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Company Update:
According to Reuters, DSM-Firmenich will divest its Animal Nutrition & Health business to CVC Capital Partners, in line with market expectations. The transaction has been signed at an enterprise value of approximately €2.2bn (EV/EBITDA 7.5x vs. forecasted 9x), with a potential earn-out of up to €0.5bn. DSM-Firmenich will retain a 20% minority stake in the carved-out business.
Concurrently, the company announced the launch of a €500m share buyback program and confirmed that it will maintain a DPS of €2.50.
Overall, against the backdrop of current market challenges, we view this event as positive, as it reinforces management’s ability to execute and deliver on its strategic objectives despite a difficult operating environment. We therefore expect a positive market reaction.
The deal comes in below our assessment of fair value for the business (€2.2bn vs €3.4bn in our SOTP). Yet, following the recent drop in share price this is good news nonetheless as
1) It will enable the streamlining of the corporate structure and refocus on its other largest core business and
2) The SBB program of €500m launched will mechanically create value because of the current 23% discount to the SOTP. In all, our expert hopes this deal could be the catalyst that will bring life back into the DSM share price. Please note that the X read may be negative for Virbac, which trades around 8.5x EV/EBITDA.
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