German multinational company Bayer is taking a strategic step to improve its financial condition. The pharmaceutical and agribusiness firm decided to sell a minority stake in its long-acting reversible contraception (LARC) division to investment management firm Apollo Global Management in a transaction valued at €3 billion, or approximately $3.43 billion.
Under the reported transaction scheme, Apollo Global Management will hold only a minority shareholder status without control rights over the entity. As such, Bayer will maintain full operational control over the business and ensure that the contraception unit remains an integral part of Bayer Pharmaceuticals' core portfolio.
The company emphasized that the full performance of this business unit will continue to be consolidated in Bayer's financial statements. This partial divestment step is designed to strengthen the capital structure and boost company liquidity amid an urgent need to meet upcoming bond maturities.
In addition to strengthening its balance sheet, the move is also an effort to mitigate operational burdens triggered by numerous lawsuits related to glyphosate-based herbicide product Roundup in the United States. The litigation burden has weighed on the company's cash flow over the past few years.
The transaction is targeted for full completion in the third quarter of 2026. Until then, Bayer must complete a series of administrative procedures, including securing approval from antitrust authorities and meeting various other closing conditions.
