Bayer to launch sale of 2 bln eur pest control unit BES this summer -sources

Icl

30/03/2021 17:49

By Arno Schuetze
    FRANKFURT, March 30 (Reuters) - German chemicals group Bayer
 BAYGn.DE  is preparing to launch an auction for its pest
control unit Bayer Environmental Science (BES) seen worth more
than 2 billion euros ($2.35 billion) in the summer, people close
to the matter said. 
    The agrichemicals giant, which continues to deleverage in
the wake of its $66 billion acquisition of U.S. peer Monsanto in
2016, is working with Bank of America  BAC.N  on the BES
divestiture, the people said. 
    While first introductory meetings with prospective buyers
are already taking place, an auction will officially be kicked
off just before or after the summer break with the view of
signing a deal by year-end, they added. 
    Bayer and Bank of America declined to comment. 
    Bayer is planning to market the unit, which supplies
products like pesticides for golf courses and rodent protection
for warehouses, to peers such as Scotts Miracle-Gro  SMG.N , ICL
 ICL.TA  as well as private equity groups, the people said.
    BES is expected to post earnings before interest, tax,
depreciation and amortization of about 200 million euros this
year and could be valued at 10-12 times that, they added.
    BES last year saw revenues increase by 7.6% to 1.1 billion
euros, while most other units of Bayer's CropScience division
saw sales slump on weak trading in North America, Bayer said in
its annual report published last month.
    Since the Monsanto acquisition, Bayer has already sold its 6
billion euro animal health business, its stake in 3.5 billion
chemical park Currenta, as well as consumer brands such as Dr.
Scholl's and Coppertone worth about 500 million each.
    Its net debt still stood at 41.9 billion euros as of
December 2020. 
($1 = 0.8527 euros)

 (Reporting by Arno Schuetze
Editing by Alexandra Hudson)
 ((arno.schuetze@thomsonreuters.com; +49 30220133648;))