Bayer set to sell pest control unit for $2.4bn
German chemicals group Bayer is gearing up to sell its pest control unit Bayer Environmental Science in the summer of 2021 for as much as $2.4bn, Reuters reported on Wednesday.
Bayer AG
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18:15 01/08/19
According to anonymous sources close to the matter, the company is already setting up meetings with potential buyers and it aims to close a deal by the end of the same year.
The BES unit which mainly sells pesticides and chemicals to dispose of rodents, reported a full-year rise in revenues of 7.6% to €1.1bn in 2020.
Bayer was looking to sell the BES unit as part of its plans to reduce its debt pile following the acquisition of US rival Monsanto in 2016 for $63bn.
As of 2020, the German chemicals giant was still dealing with litigation regarding Monsanto’s Roundup weedkiller which had been linked to cases of non-Hodgkin’s Lymphoma.
Tens of thousands of claims were filed by consumers linking the use of the chemical to the disease.
Bayer reached a $2bn settlement deal in February that will resolve future claims over a four-year period.
The sale of its pest control unit was just the latest move in its efforts to reduce debt. The company had already sold its animal health unit for €6bn, a €3.5bn stake in Currenta and its brands, Dr. Scholl’s and Coppertone, for €1bn.
Bayer reported net debt of €41.9bn at the end of 2020 and a net financial debt of €30bn.