By Arno Schuetze
FRANKFURT, March 31 (Reuters) – German chemical compounds group Bayer BAYGn.DE is getting ready to kick off the sale of pest management unit Bayer Environmental Science (BES) this summer time with a price ticket doubtlessly topping 2 billion euros ($2.four billion), folks near the matter stated.
The agrichemicals big, seeking to cut back debt within the wake of its $63 billion buy of U.S. peer Monsanto in 2016, is working with Financial institution of America BAC.N on the sale, the folks stated, talking anonymously as the data isn’t public.
Whereas introductory conferences with potential consumers are already happening, an public sale will formally begin simply earlier than or after the summer time break, with the view of signing a deal by the tip of the 12 months, they added.
Bayer and Financial institution of America declined to remark.
Bayer is planning to market the unit, which provides merchandise like pesticides for golf programs and rodent safety for warehouses, to friends akin to Scotts Miracle-Gro SMG.N, ICL ICL.TA in addition to non-public fairness teams, the sources stated.
BES final 12 months noticed revenues improve by 7.6% to 1.1 billion euros, whereas most different items of Bayer’s CropScience division noticed gross sales hunch on weak buying and selling in North America.
Bayer is simply divesting the enterprise for skilled customers with gross sales of 600 million euros, Chief Government Werner Baumann stated in an analyst name final month.
That a part of BES is predicted to publish earnings earlier than curiosity, tax, depreciation and amortisation of about 200 million euros this 12 months and may very well be valued at 10-12 occasions that, the sources stated.
Because the Monsanto acquisition, Bayer has already offered its 6 billion euro animal well being enterprise, its stake in 3.5 billion euro chemical compounds park Currenta, in addition to client manufacturers akin to Dr. Scholl’s and Coppertone value about 500 million euros every.
Its internet debt stood at 41.9 billion euros as of December 2020, whereas its internet monetary debt stood at 30 billion.
($1 = 0.8527 euros)
(Reporting by Arno Schuetze. Modifying by Alexandra Hudson and Mark Potter)
((arno.schuetze@thomsonreuters.com; +49 30220133648;))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.