Bayer Cropscience said that Bayer AG and and Cinven have entered into a definitive agreement regarding the sale of Bayer's Environmental Science Professional business for a purchase price of $2.6 billion (2.4 billion euros).
Bayer AG (Bayer) is one of the promoters of Bayer Cropscience. It held 8.43% stakke in the company as on 31 December 2021.
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 telecommunications).
"This divestment represents a very attractive purchase price and allows us to focus on our core agricultural business and the successful implementation of our Crop Science Division growth strategy, said Rodrigo Santos, member of the board of management of Bayer AG and president of the Crop Science Division.
Environmental Science Professional is a global leader offering environmental solutions to control pests, diseases and weeds in non-agricultural areas such as vector control, professional pest management, vegetation management, forestry, and turf and ornamentals. In 2021, the business had approximately 800 employees supporting operations and sales in more than 100 countries.
Bayer had announced its decision to divest the business in February 2021.
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 CropScience is a global enterprise with core competencies in the life science fields of healthcare and nutrition.
The company reported a standalone net profit of Rs 84.80 crore in the quarter ended December 2021 as against net loss of Rs 45.10 crore during the previous quarter ended December 2020. Sales rose 7.83% YoY to Rs 990.10 crore in December 2021 quarter.
Shares of Bayer CropScience were currently trading 1.31% higher at Rs 4499.85 on the BSE.
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