Report
DSM-Firmenich FIRST LOOK: Sale of ANH to CVC for EV of up to € 2.2bn
Dsm-firmenich announced the divestment of its ANH business to CVC, while it will retain a 20% minority stake for now. The deal value (EV of up to € 2.2bn for 100%; implying a c. 7x EV/normalized adjusted EBITDA multiple) is in line with recent market rumours although below our € 3bn forecast, while also other elements in the deal structure are a bit disappointing (price tag included €0.5bn earn-out, a loan & liquidity facility will be provided). Despite the lower than expected ANH deal metrics, we welcome the ANH as it allows dsm-firmenich to turn the page on the long awaited strategic transformation. We still appreciate dsm-firmenich for its broad portfolio and market leading positions in the core consumer-oriented businesses and maintain our Accumulate rating. We do lower our target price from € 85 to € 82 to take into account the lower than expected ANH deal value.
Underlying
KONINKLIJKE DSM N.V.
Provider
KBC Securities
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Wim Hoste
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