Bayer sells H.C. Starck to Advent International and The Carlyle Group for EUR 1.2 billion
Proceeds will help to finance the Schering acquisition
The Bayer Group plans to sell its subsidiary H.C. Starck to a consortium formed by financial investors Advent International and The Carlyle Group for approximately EUR 1.2 billion. As planned, the proceeds will help to finance the acquisition of Schering.
The transaction value comprises a cash component of more than EUR 700 million and the assumption of financial liabilities and personnel-related commitments totaling some EUR 450 million. The divestment thus reduces Bayer's net debt by about EUR 1 billion, with an accounting gain of about EUR 150 million. Closing is planned to take place at the beginning of 2007, subject to the approval of the antitrust authorities. Advent and Carlyle intend to continue developing the H.C. Starck business, with the aim of positioning the company for an initial public offering in three to five years.
Bayer conducted the sale of H.C. Starck as an auction process. Several of the many prospective acquirers were invited to examine the company in detail and submit a binding offer. Both strategic and financial investors participated in the bidding through the final stage.
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