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Bayer to Sell Environmental Science Professional Business to Cinven

The $2.6 billion transaction is expected to close in second half of 2022.

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Bayer 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, Bayer announced in a news release.

“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. It is headquartered in Cary, North Carolina. Bayer had announced its decision to divest the business in February 2021.

“Driven by a shared belief in people and purpose, Cinven will enable the Environmental Science Professional business to advance towards its vision of healthy environments for everyone, everywhere. We are convinced by Cinven’s focus and its commitment to the long-term growth potential for the business and its people,” 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 highly attractive and critical industry. We thank Bayer for the trust they have placed in Cinven and plan to build on the strong foundations established by Bayer by significantly investing in it,” said Pontus Pettersson, partner and head of industrial at Cinven. “As a long-established global investment firm, Cinven is well positioned to continue to drive innovation and accelerate growth at Environmental Science Professional, including the delivery of digital and data-enabled solutions, as well as make the business more agile in responding to the unique needs of its markets and customers.”

In a press release from Cinven, 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 the support and backing of Cinven, I am thrilled for the opportunity for Environmental Science Professional to become even more growth-oriented, with a full focus on advancing innovations that meet the unique and evolving needs of our customers around the world.”

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, 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 says it takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society. 

In a Cinven press release, the Cinven’s Industrials Sector and DACH teams said it sees Bayer Environmental Science Professional as an attractive investment opportunity, given the business':

 
  • Resilient, growing and diversified end-markets, addressing an increasing societal demand for pest control and healthier, disease-free environments driven by higher living standards, urbanisation and climate change;
  • Leading market positions, underpinned by its strong science-led 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;
  • Product portfolio with clear social and environmental benefits, consistent with the focus of Cinven’s ESG strategy, including products for improving public health outcomes, fighting vector-borne disease, controlling pest infestations, and reducing wildfire risks;
  • Longstanding relationships with professional customers, supported by its leading technical service capabilities;
  • Significant growth opportunities through further investment in R&D and in-licensing external IP to develop new sustainable products for pest management, including biological and digital technologies;
  • Consolidation opportunities in the fragmented specialty pest management sector through buy and build M&A; and
  • Experienced international leadership team, led by CEO Gilles Galliou, with responsibility for a highly qualified, high-performing global employee base.