Two transactions underline accelerating portfolio reshuffles in animal nutrition, as large chemical groups narrow their focus and specialists, and private equity move to consolidate higher-growth niches.
German feed additives specialist Biochem has agreed to acquire BASF’s global glycinate business, while PAI Partners has signed a deal to buy Innovad Group from IK Partners, in a transaction expected to close in Q1 2026.
Biochem’s acquisition of BASF’s global glycinate portfolio marks another exit by BASF from parts of its animal nutrition value chain that sit outside its integrated production model.
The divested business covers chelated trace minerals used in animal diets to improve mineral uptake and reduce environmental excretion.
While financial terms were not disclosed, the transaction includes BASF’s established global distribution network, with Biochem taking full operational control from January 2026 following a handover period running through Q1 2026.
BASF continues carve-out of assets
A BASF spokesperson told AgTechNavigator that the glycinate business is not part of the group’s Verbund-integrated production network and is therefore not considered strategic, adding that BASF believes customers can be better served through alternative market channels.
The sale follows BASF’s decision to explore strategic options for its feed enzyme activities and reinforces a sharper focus on vitamins and carotenoids, where the group argues its integrated production system delivers long-term cost competitiveness and supply reliability.
BASF will exit the glycinate business entirely once the transition is completed, ending technical support after the handover phase.
Biochem expands scale and reach in organic trace minerals
For Biochem, the deal materially expands its footprint in organic trace minerals, an area where demand is being driven by tighter environmental regulation and pressure on feed efficiency. The company gains immediate access to BASF’s global customer base and channel partnerships, accelerating scale without greenfield expansion.
Private equity doubles down on specialty additives
Separately, PAI Partners has agreed to acquire Innovad Group, a Belgium-based specialty feed additives supplier active in poultry, swine, and ruminants, from IK Partners. Innovad’s management team will reinvest alongside PAI.
Innovad supplies around 900 customers in 75 countries and operates six production sites across Europe and Brazil, combining in-house manufacturing with tolling partners. Its portfolio spans gut health, mycotoxin risk management and immunity-focused additives, with a growing emphasis on higher-value, application-driven solutions.
Under IK’s ownership since 2021, Innovad delivered double-digit revenue growth, expanded into primary ingredients, completed three bolt-on acquisitions, and launched a biomonitoring tool for toxin control. PAI plans to build on that trajectory through further organic growth and M&A, reinforcing the platform’s position in specialty feed additives.
Market signal: Focus and consolidation
Taken together, the transactions highlight two parallel trends reshaping animal nutrition - strategic focus by multinationals, as BASF continues to streamline toward assets aligned with integrated production and scale economics; and consolidation in specialty additives, as mid-sized suppliers backed by private equity target segments with regulatory tailwinds, higher margins and differentiated technology.
