German chemical groups Bayer (BAYGn.DE) and Lanxess (LXSG.DE) have agreed to sell chemical park operator Currenta to Macquarie Infrastructure and Real Assets (MIRA) (MQG.AX) for an enterprise value of 3.5 billion euros ($3.9 billion).
That includes net debt and pension obligations and a related real estate portfolio that Bayer will transfer to Macquarie, the sellers said on Tuesday.
Reuters reported last September initial plans by Bayer to divest its 60% stake in the chemical park operator, part of a string of assets it has put on the block to slash debt since its $63 billion takeover of Monsanto last year.
It has recently sold consumer health brands Dr. Scholl’s and Coppertone and is looking for a new owner for its animal health business.
MIRA has committed to keeping Currenta in its current structure and not sell parts over the next three years, the head of MIRA’s German business, Hilko Schomerus, told Reuters.
“We are convinced of the benefits of the integrated business model of the Currenta group,” he said.
He added the investment would offer adequate returns at low risks and that MIRA intended to hold on to Currenta for 10 to 12 years.
Bayer’s stake in Currenta fetched an equity value of about 1.17 billion euros after deducting net debt and pension obligations. In addition, Bayer agreed to sell real estate on which Currenta operates for 180 million euros.
Lanxess, which had initially intended to hold on to its stake, realized an equity value of about 780 million euros for its 40%, in addition to an unspecified participation in profit until the transaction is completed.
Lanxess, a maker of lubricant additives, drug ingredients and leather-tanning chemicals, said it struck a service and supply agreement with MIRA for an initial 10 years, securing “reliable infrastructure at competitive conditions” at its main German production sites.
“The sale of our stake will give us additional financial leeway to drive forward our growth course in specialty chemicals,” said Lanxess CEO Matthias Zachert.
Bayer had initially planned to sell the Currenta stake – a legacy asset with little benefit for its core drugs and agriculture businesses – to its former industrial chemicals subsidiary Covestro (1COV.DE), but could not agree on a valuation.
Covestro and Lanxess (LXSG.DE), both former Bayer businesses, are Currenta’s main customers.
Reuters reported in March that Macquarie had emerged as the leading bidder for Bayer’s stake, beating out rival suitors DWS (DWSG.DE) and KKR (KKR.N).
Source: Reuters.com