Apollo Global Management Back in the Race? Private Equity Giant Reportedly Re-Enters Bidding for DSM-Firmenich's Lucrative Animal Nutrition Unit

The high-stakes auction for DSM-Firmenich's coveted animal nutrition and health unit has taken a dramatic turn, with reports indicating that private equity giant Apollo Global Management (APO) has been invited back into the fray. This development injects new energy into what is poised to be one of the year's most significant divestments in the animal health sector, potentially reigniting a fierce competition for an asset valued anywhere from a staggering €6 billion to €9 billion.

Apollo, initially considered a frontrunner in the bidding process, had reportedly withdrawn from the auction earlier, citing disagreements over the valuation of the expansive unit.

Their potential re-entry suggests a renewed interest or perhaps a shift in negotiation dynamics, hinting that DSM-Firmenich (OTCQX:DSMLY) is keen to secure the best possible outcome for the sale.

This strategic divestment is a core component of DSM-Firmenich's broader strategy to sharpen its focus on its high-growth health, nutrition, and beauty divisions.

By shedding non-core assets like the animal nutrition unit, the company aims to streamline its operations and allocate resources more effectively towards its primary strategic pillars.

The unit, a substantial player in the global animal feed additives market, has attracted significant attention from several leading private equity firms.

Besides Apollo, other financial heavyweights like Advent International, Cinven, Bain Capital, and Carlyle Group (CG) have been identified as potential bidders, all vying for control of this lucrative asset.

DSM-Firmenich has previously expressed its ambition to finalize the sale by the third quarter of 2023, underscoring the urgency and strategic importance of this transaction.

While the company has confirmed it is progressing well with the divestment process, it has, as is typical in such sensitive negotiations, refrained from commenting on specific parties involved in the bidding.

Apollo's potential return to the bidding table could intensify the competition, potentially driving up the final sale price and ensuring DSM-Firmenich achieves its strategic objectives.

The market will be closely watching as this multi-billion euro saga unfolds, with the outcome poised to reshape parts of the global animal health and nutrition landscape.