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 the enterprise of environmental science professionals 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.