Bayer sells its professional activity in environmental sciences to Cinven – PCT

0

Bayer and Cinven have entered into a definitive agreement to sell Bayer’s Environmental Science Professional business for a purchase price of $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 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 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 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 an extremely 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.

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 healthy environments for everyone, everywhere. Cinven clearly shares this vision for our organization and Cinven has demonstrated that it is committed to the long-term success of our business and would be a great home for our employees.

“With Cinven’s backing and support, I’m excited for the opportunity for Environmental Science Professional to become even more growth-focused, focusing fully on advancing innovations that meet the unique and evolving needs of our customers. worldwide.”

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 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 claims to take a responsible approach to its portfolio companies, their employees, their suppliers, local communities, the environment and society.

In a press release from Cinven, the Industrial teams from Cinven and DACH said they see Bayer Environmental Science Professional as an attractive investment opportunity, given the activity:

  • Resilient, growing and diverse end markets, meeting growing societal demand for pest control and healthier, disease-free environments, driven by higher living standards, urbanization and climate change;
  • Market-leading positions, underpinned by its strong science-driven R&D capabilities, regulatory and intellectual property (“IP”) protections;
  • Strong brands with an opportunity to accelerate organic growth through expansion into new geographies and new market segments;
  • Portfolio of products with clear social and environmental benefits, consistent with the direction of Cinven’s ESG strategy, including products to improve public health outcomes, combat vector-borne diseases, control pest infestations and reduce forest fire risks;
  • Long-standing relationships with professional customers, supported by its core technical service capabilities;
  • Significant growth opportunities through new investment in R&D and licensing of external intellectual property to develop new sustainable pest control products, including biological and digital technologies;
  • Consolidation opportunities in the fragmented specialty pest control industry through buy-and-build mergers and acquisitions; and
  • Experienced international management team, led by CEO Gilles Galliou, responsible for a base of highly skilled and high performing global employees.
Share.

Comments are closed.