Bayer sells Environmental Science Professional Business to Cinven – Advice Eating

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, Bayer announced in a press release.

“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. It is headquartered in Cary, North Carolina. 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 placed 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 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.”

In a Cinven press release, Gilles Galliou, CEO of Bayer’s Environmental Science Professional business said: “Everything we do at Environmental Science Professional is guided by our vision of a healthy environment for everyone, everywhere. Cinven clearly shares this vision for our organization and Cinven has shown that it is committed to the long-term success of our company and would be a great home for our employees.

“With the support and backing of Cinven, I am excited about the opportunity for Environmental Science Professional to become even more growth-oriented and fully focused on driving innovation that meets the unique and evolving needs of our customers around the world satisfy.”

About Cinven
Cinven is an 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 says it takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.

In a press release from Cinven, the Cinvens Industrials Sector and DACH teams said they see Bayer Environmental Science Professional as an attractive investment opportunity, given the business’:

  • Resilient, growing and diversified end markets that meet increasing societal demands for pest control and healthier, disease-free environments driven by higher living standards, urbanization and climate change;
  • Leading market positions, underpinned by its strong science-led R&D capabilities, regulatory and intellectual property (IP) protections;
  • Strong brands with the ability to accelerate organic growth through expansion into new geographies and new market segments;
  • Product portfolio with clear social and environmental benefits in line with the focus of Cinven’s ESG strategy, including products to improve public health outcomes, control vector-borne diseases, control pest infestations and reduce wildfire risk;
  • Long standing relationships with professional customers backed by its leading technical service capabilities;
  • Significant growth opportunities through continued investment in R&D and in-licensing of external intellectual property to develop new sustainable pest control products, including biological and digital technologies;
  • Opportunities for consolidation in fragmented specialty pest control sector through buy-and-build M&A; and
  • Experienced international leadership team led by CEO Gilles Galliou with responsibility for a highly skilled, high performing global workforce.

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