Bayer Enters Agreement with Cinven to Sell its Science Business
A Brief Summary
Bayer CropScience recently announced that Bayer AG, one of its promoters, has entered into a definitive agreement with Cinven relating to the sale of Bayer's Environmental Science Professional Business for $2.6 billion.
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Bayer AG held an 8.43 per cent stake in Bayer CropScience as of 31 December 2021.
Cinven is a global private equity firm that focuses on developing world-class global companies. The firm invests in business services, consumer, financial services, healthcare, industrials and technology, media and communication (TMT).
Rodrigo Santos, president of the Crop Science Division, said: "This divestment represents an attractive purchase price and allows us to focus on our core agricultural business and the successful implementation of our "Crop Science Division growth strategy."
Environmental Science Professional is a global business that offers environmental solutions regarding pests, diseases, and weed control in non-agricultural areas such as professional pest management, vector control, vegetation management, forestry, and turf and ornamentals.
Last year, in 2021, the business had around 800 employees working in more than 100 countries.
The agreement will probably be completed in the second half of this year, subject to customary closing conditions. The net proceeds will be used to pay off Bayer's net financial debt.
Bayer CropScience is a multinational corporation with competencies in healthcare and nutrition.
In the quarter ended December 2021, the firm recorded a standalone net profit of Rs 84.80 crore, compared to a net loss of Rs 45.10 crore in the preceding quarter ended December 2020. In the December 2021 quarter, sales increased 7.83 per cent year on year to Rs 990.10 crore.