March 10, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

In a move toward streamlining its Crop Science portfolio, Bayer has agreed to sell its Environmental Science Professional business to international private equity investor Cinven for $2.6 billion.

The decision to divest the business was originally announced in February 2021.

“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 at Bayer AG, and president, Crop Science Division.

Headquartered in Cary, North Carolina, Bayer Environmental Science Professional (BESP) is a global provider of a wide range of products and services to manage pests, including rodents, pest insects, and weeds for the forestry, range and pasture, vegetation management, and turf and ornamental industries. It also offers environmental solutions to control vector-borne diseases such as malaria.

All told, the business has 2,000 product registrations, sold in more than 100 countries. Its global operations encompass 800 employees, of which 200 work in product innovation, market leading R&D capabilities, and four international R&D centers.

“Everything we do at Environmental Science Professional is guided by our vision of healthy environments for everyone everywhere,” said Gilles Galliou, CEO, BESP. “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.”

“Cinven is delighted by the opportunity to invest in Bayer Environmental Science Professional, a global leader in specialty pest management that serves critical needs for society across a broad range of end-markets,” said Pontus Pettersson, partner, Cinven. “Cinven is excited to build an independent, focused company, and to extend BESP’s product portfolio further by creating innovative and sustainable solutions for its customers.”

Cinven stated that it has long-standing relationships with large corporates in the industrial sector, especially in Germany and the wider DACH region – Germany (D), Austria (A), and Switzerland (CH).

The investor has a long history of carving out businesses with attractive opportunities to create new successful, standalone companies. Such factors identified in BESP include:

~ Addressing an increasing societal demand for healthier pest control driven by higher standards of living, urbanization, and climate change for resilient, growing, and diversified end markets.

~ A leading market position underpinned by strong R&D capabilities and IP protections.

~ Strong brands positioned to accelerate organic growth through expansion into new geographies and new market segments. 

~ A product portfolio with clear social and environmental benefits that aligns with Cinven’s ESG strategy. 

~ Long standing relationships with professional customers.

~ Sizable growth potential through further investment in R&D and in-licensing external IP. 

~ Consolidation opportunities in the fragmented speciality pest management sector through buy and build M&A. 

~ Experienced international leadership team. 

“Following Cinven’s recent acquisitions of TK Elevator and Arxada, Cinven is confirmed as a preferred partner for large European corporates on significant disposals, especially within the Industrials sector,” said Pettersson. “Bayer has been an exemplary custodian of the business, and we look forward to continued close collaboration between BESP and Bayer.”

“Bayer Environmental Science Professional enjoys strong positions in multiple markets across the world, driven by its best-in-class scientific and regulatory teams, well regarded brands, and leading technical service capabilities,” added Anthony Cardona, partner, Cinven. “Cinven has been impressed by the quality of the team and operations, and this transaction should create significant opportunities across the business.”

As one of the most active and successful investors in Germany and the DACH region, this acquisition of BESP by Cinven builds on other recent deals – carving out TK Elevator from thyssenkrupp AG and Arxada (formerly Lonza Specialty Ingredients) from Lonza Group AG.

Cardona explained, “Cinven shares management’s ambitious growth agenda and views BESP as a platform investment, with scope to grow the business significantly and broaden its product portfolio through acquisitions and strategic partnerships.”

BESP CEO Gilles Galliou concluded, “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.”

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– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.