Bayer to Sell Environmental Science Business to Cinven for US$2.6 Billion | Business
LEVERKUSEN, Germany–(BUSINESS WIRE)–March 10, 2022–
Bayer and Cinven have reached a definitive agreement to sell Bayer’s Environmental Science Professional business for a purchase price of US$2.6 billion (2.4 billion euros), Bayer announced Thursday. “This divestment represents a very attractive purchase price and allows us to focus on our core agricultural business and the successful execution of the growth strategy of our Crop Science division,” said Board Member Rodrigo Santos. Board of Directors of Bayer AG and Chairman of Crop Science. Science division.
Environmental Science Professional is a global leader providing environmental 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. As of 2021, the company had approximately 800 employees supporting operations and sales in over 100 countries. Its headquarters are located in Cary, North Carolina, USA. Bayer announced its decision to sell the business in February 2021.
“Driven by a shared belief in people and purpose, Cinven will enable Environmental Science Professional to advance its vision of healthy environments for everyone, everywhere. We are confident in Cinven’s direction and commitment to the long-term growth potential of the company and its employees,” Santos said. The transaction is expected to close in the second half of this year, subject to the satisfaction of customary closing conditions. Its net proceeds are to be used to reduce Bayer’s net financial debt.
“Bayer’s Environmental Science Professional business 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 established by Bayer by investing significantly,” said Pontus Pettersson, Partner and Head of Industry at Cinven. “As a long-established global investment firm, Cinven is well positioned to continue to drive innovation and accelerate the growth of Environmental Science Professional, including the delivery of digital and data-driven solutions, as well as to make the company more agile to meet the unique needs of its markets and customers.
BofA Securities acted as financial advisor to Bayer, while Hengeler Mueller acted as legal advisor.
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 adapting them to future events or developments.
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KEYWORD: GERMANY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: ENVIRONMENT FINANCE FITNESS & NUTRITION PROFESSIONAL SERVICES GENERAL HEALTH HEALTH AGRICULTURE NATURAL RESOURCES SCIENCE OTHER SCIENCES
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PUBLISHED: 03/10/2022 01:30 AM/DISC: 03/10/2022 01:30 AM