Global chemical giant BASF is reviewing strategic options, including a potential sale, for its successful feed enzymes business as part of a move to prioritize core value chains like vitamins and carotenoids within its Nutrition & Health division.
BASF, the world’s largest chemical producer, has announced it is evaluating strategic options for its feed enzymes business, a profitable unit within the company's Nutrition & Health division. The review, which includes the potential for a sale to an interested partner, signals a strategic shift to focus resources on core product platforms, particularly vitamins and carotenoids, in the company's Nutrition Ingredients business unit.
The feed enzymes business, which features globally recognized brands and a strong innovation pipeline, has been positioned by BASF management as an attractive asset for potential partners. Dr. Martin Volland, President of BASF's Nutrition & Health division, stated, "We are looking for partners for whom feed enzymes represent a strategic focus area to drive innovation and profitable growth." He underscored the value of the unit, highlighting its "highly skilled team that combines market and technical expertise with pioneering experience in feed enzymes, globally established brands, and a robust innovation pipeline."
BASF holds a pioneering position in the feed enzymes market, having launched Natuphos® in 1991 as the world’s first commercial feed enzyme (phytase). This product and its subsequent generations, which break down anti-nutrients in animal feed to improve nutrient utilization and reduce phosphorus excretion, have been instrumental in making animal protein production more efficient and sustainable. Over time, the portfolio expanded significantly, and by 2021 included key enzymes such as phytase, xylanase, glucanase, and mannanase.
The business has demonstrated impressive performance, with Daniela Calleri, Head of Nutrition Ingredients at BASF, noting that the feed enzymes unit has "significantly outgrown the market over the past years." Despite this success, the company is confident that an "alternative setup" will allow the business to "fully unlock its potential" under a new owner who views it as a central, rather than complementary, product line.
The decision to review the feed enzymes business aligns with BASF's broader corporate strategy to continuously manage and optimize its portfolio by concentrating on key value chains. Calleri elaborated on this, stating, "In our Nutrition Ingredients business unit, we will continue to strengthen our core product platforms for vitamins and carotenoids as part of BASF’s key value chains." This move echoes a similar strategic transaction in recent history, where BASF divested its Food and Health Performance Ingredients business to Louis Dreyfus Company (LDC) to further sharpen its focus on vital nutrition ingredients.
