Royal DSM, a global nutrition company and supplier to the pet food and treat industry, announced it will enter a joint venture with Nenter & Co., Inc. to produce vitamin E. DSM will hold 75% share of the joint venture, representing more than $154 million. The deal is expected to close by the end of the third quarter 2019.

The deal includes facilities in Jingzhou and Shishou, both in Hubei, China. The joint venture will acquire and operate Jingzhou and retain a minority shareholding of the Shishou facility. It also includes a profit share agreement between the two companies.

Any vitamin E produced through the business will supply DSM, subject to the existing supply agreements of Nenter. Through the joint venture, DSM plans to enhance its vitamin E position, which is an essential ingredient in the company’s animal nutrition premix solutions. The venture will also support DSM’s global supply chain footprint by incorporating China and the Asia Pacific region.

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