Transaction streamlines Crop Science portfolio and ensures greater focus on core agricultural business / Cinven aims to continue driving innovation and accelerating growth through significant investments in the acquired business
LEVERKUSEN, Germany –News Direct– Bayer
LEVERKUSEN, Germany, March 10, 2022 /3BL Media/ – 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). ) met, Bayer announced on Thursday. “This divestment represents a very attractive purchase price and allows us to focus on our core agricultural business and the successful execution of our growth strategy in the Crop Science division,” said Rodrigo Santos, Member of the Board of Management of Bayer AG and President of the Crop Science Department.
Environmental Science Professional is a leading global provider of environmental solutions for pest, disease and weed control in non-agricultural sectors such as vector control, professional pest control, vegetation management, forestry, and turf and ornamental crops. In 2021, the company had around 800 employees supporting operations and sales in more than 100 countries. The head office is 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 the Environmental Science Professional business to move closer to its vision of a healthy environment for everyone, everywhere. We believe in Cinven’s focus and commitment to the long-term growth potential of the company and its people,” said Santos. The transaction is expected to close in the second half of this year, subject to the satisfaction of customary closing conditions. The net proceeds will be used to reduce Bayer’s net financial debt.
“Bayer’s Environmental Science Professional business is a global leader in an extremely attractive and critical industry. We thank Bayer for the trust they have shown in Cinven and we plan to build on Bayer’s strong foundation by investing significantly in the company,” said Pontus Pettersson, Partner and Head of Industrial at Cinven. “As a long-established global investment firm, Cinven is well positioned to continue to drive innovation and accelerate growth in the Environmental Science Professional, including the delivery of digital and data-enabled solutions, as well as making the firm more agile to respond to the unique needs of its markets and communities Customers.”
BofA Securities acted as financial advisor to Bayer while Hengeler Mueller acted as legal advisor.
About BayerBayer is a global company with core competencies in the life science areas of health and nutrition. Its products and services are designed to help people and the planet thrive by supporting efforts to meet the grand challenges of a growing and aging world population. Bayer is committed to driving sustainable development and making a positive impact with its businesses. At the same time, the Group wants to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality worldwide. In the 2021 financial year, the group employed around 100,000 people and generated sales of EUR 44.1 billion. R&D expenses before special items amounted to 5.3 billion euros. For more information, visit www.bayer.com.
About CinvenCinven is a leading international private equity firm focused on building world-class global companies. Its funds invest in six key sectors: business services, consumer, financial services, healthcare, industrials and TMT (technology, media and telecoms). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg. Cinven acts responsibly towards its portfolio companies, their employees, suppliers, local communities, the environment and society. www.cinven.com
More information at www.bayer.com.
Forward-Looking Statements This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer 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 obligation to update these forward-looking statements or to conform them to future events or developments.
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