Bayer Completes Sale of Environmental Science Business to Cinven
LEVERKUSEN, Germany–(BUSINESS WIRE)–Bayer has completed the sale of its Environmental Science Professional business to international private equity firm Cinven, after the two companies reached a corresponding agreement in March. The conditions to closing the transaction – including obtaining regulatory approval – have now been satisfied. The purchase price for the company, which generated revenue of around €600 million in 2021, is US$2.6 billion.
“We thank the employees of Environmental Science Professional for their many years of commitment and the associated success of Bayer. In Cinven, we have found a strong new owner with a firm commitment to the long-term growth potential of the company and its employees,” said Rodrigo Santos, Bayer AG Board Member and Chief Crop Science division. . “At the same time, we can focus on our core agricultural business and the successful implementation of our growth strategy in the Crop Science division. Bayer will use the net proceeds of the transaction to reduce its net financial debt.
The divested business is expected to operate as an independent company called Envu. The company is a global leader offering solutions to control pests, diseases and weeds in non-agricultural areas such as vector control, professional pest control, vegetation management, forestry, turf and ornamental plants. It is headquartered in Cary, North Carolina, USA, and operates in over 100 countries. Nearly 900 employees in total will transfer from Bayer to Envu.
“Envu is a global leader in a very attractive and critical industry. We thank Bayer for the confidence they have placed in Cinven and plan to build on the strong foundation laid by Bayer by investing significantly,” said Pontus Pettersson, Partner at Cinven. “Cinven is excited to build an independent and focused business and is well positioned to continue to drive innovation and accelerate growth, including the delivery of digital and data-driven solutions, and to further expand the product portfolio by creating innovative and sustainable solutions for its customers.”
Envu was founded in 2022, a new company built on years of Bayer experience, with the sole purpose of advancing healthy environments for everyone, everywhere. Envu offers dedicated services in the following areas: Professional Pest Control, Forestry, Ornamental Plants, Golf, Industrial Vegetation Management, Lawn & Landscape, Mosquito Management, and Range & Pasture. In each of its business areas, Envu focuses its work on chemistry and beyond, collaborating with its customers to deliver innovative solutions that will work today and into the future. Envu’s portfolio includes over 180 trusted and well-known brands. The company employs nearly 900 people and operates in more than 100 countries with four global innovation centers. For more information, visit the Envu website.
Bayer is a global company with core competencies in the areas of life sciences healthcare and nutrition. Its products and services are designed to help people and the planet prosper by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to fostering sustainable development and generating a positive impact on its activities. At the same time, the Group aims to increase its profitability and create value through innovation and growth. The Bayer brand is synonymous with trust, reliability and quality around the world. In fiscal year 2021, the Group employed approximately 100,000 people and generated revenue of €44.1 billion. R&D expenditure before exceptional items amounted to 5.3 billion euros. For more information, visit www.bayer.com.
Cinven is a leading international private equity firm focused on building world-class global businesses. Its funds invest in six key sectors: Business Services, Consumer Goods, Financial Services, Healthcare, Industrials and TMT (Technology, Media and Telecommunications). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg. Cinven takes a responsible approach to its portfolio companies, their employees, their suppliers, local communities, the environment and society. www.cinven.com
This press release may contain forward-looking statements based on current assumptions and forecasts made by Bayer’s management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on Bayer’s website at www.bayer.com. The company assumes no responsibility for updating these forward-looking statements or conforming them to future events or developments.