Global private equity firm Cinven today announced that it has signed an agreement with Bayer AG (ETR: BAYN) to acquire its Environmental Science Professional business for a total enterprise value of $2.6 billion (~$2.4 Billions of Euro’s).
Bayer Environmental Science Professional (BESP) is a leading global provider of products and services aimed at creating healthier environments, managing pests and eliminating vector-borne diseases, in a range of end markets. BESP has an extensive product portfolio to manage pests (such as rodents, insect pests and invasive weeds) in a sustainable and responsible manner, including for the vegetation management, range and soil management markets. pasture, forestry and turf and ornamentals. In addition, BESP markets products to protect against vector-borne diseases such as malaria and to promote public health goals in developing countries.
Based in Cary, North Carolina, USA, BESP has global operations with c. 800 employees and c. 2,000 product registrations, sold in over 100 countries. BESP also has market-leading R&D capabilities, with four international R&D centers and more than 200 employees working in product innovation.
Cinven has long-standing relationships with leading companies in the industrial sector, particularly in Germany and the DACH region, and has extensive experience in building businesses in a responsible way for all stakeholders, enabling Cinven to identify exciting opportunities and create successful new self-sustaining businesses.
Cinven’s and DACH’s industrials teams view BESP 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.
Pontus Pettersson, Partner at Cinven, commented:
“Cinven welcomes the opportunity to invest in Bayer Environmental Science Professional, a global leader in specialty pest control that serves critical societal needs across a broad range of end markets. Cinven is excited to build an independent, focused business and further expand BESP’s product portfolio by creating innovative and sustainable solutions for its customers.
“Following the recent acquisitions by Cinven of TK Elevator and Arxada, Cinven confirms itself as a privileged partner of large European companies on major disposals, particularly in the industrial sector. Bayer has been an exemplary steward of the company, and we look forward to the continued close collaboration between BESP and Bayer.”
Anthony Cardona, Partner at Cinven, added:
“Bayer Environmental Science Professional enjoys strong positions in several markets around the world, thanks to its best scientific and regulatory teams, its well-known brands and its leading technical service capabilities. Cinven was impressed with the quality of the team and operations, and this transaction should create significant opportunities across the company.
“Cinven shares management’s ambitious growth agenda and views BESP as an investment platform, with the opportunity to grow the business significantly and expand its product portfolio through acquisitions and strategic partnerships. »
Gilles Galliou, CEO of BESP, added:
“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.”
Cinven is one of the leading investors in the carve-outs of industrial companies in Europe. The Cinven fund’s investment in BESP, acquired from Germany’s Bayer AG, builds on its recent experience slicing thyssenkrupp AG’s TK Elevator and Lonza Group AG’s Arxada (formerly Lonza Specialty Ingredients).
Cinven is also one of the most active and successful investors in Germany and the wider DACH region. Other recent Cinven fund investments in Germany include STADA, Synlab, think-cell and Viridium.
Cinven is a responsible, ESG-focused investor committed to upholding the environmental, regulatory and stakeholder responsibilities of BESP employees. Under the ownership of the Cinven funds, BESP will remain an important partner of Bayer AG and will work closely with Bayer in several areas in the future.