LEVERKUSEN, Germany and STRASBOURG, France, Oct. 2 /PRNewswire/ -- Bayer
will greatly expand its crop protection business with the acquisition of
Aventis CropScience (ACS). The purchase agreement has now been signed,
marking the successful completion of negotiations with current owners Aventis
(76 percent) and Schering (24 percent). The acquisition price of EUR 7.25
billion, including the assumption of debt, makes this the largest acquisition
in Bayer's history. The crop science activities will be organized as a
separate legal entity named "Bayer CropScience" in keeping with its new,
broader strategic alignment.
"Acquiring Aventis CropScience will make us a world leader in crop science
and substantially boost Bayer's earning power," commented Dr. Manfred
Schneider, Chairman of the Board of Management of Bayer AG. "This acquisition
again evidences our strategy of investing for the long term in core businesses
and growth markets. For this activity, Bayer intends to form an independent
unit within the Group. We are convinced that this is the best way to
integrate the two businesses and that this will best meet market demands and
competitive challenges." Schneider is expecting a synergy potential of around
EUR 500 million a year. One-time restructuring charges are expected to reach
the same amount.
The new company will be headed by Dr. Jochen Wulff, currently General
Manager of Bayer's Crop Protection Business Group. Bertrand Meheut, Chairman
and CEO of Aventis CropScience, will partner with Dr. Wulff in leading the
integration process.
For Dr. Wulff, the acquisition and the integration of Aventis CropScience
is a milestone in Bayer's history: "We are combining two very successful
leaders of our industry with complementary strengths and ideal fit. And we
are creating a new enterprise with all the essentials for sustainable growth
and leadership in crop science."
The combined sales are expected to total between EUR 6.5 and 7 billion in
2001, putting Bayer close behind the market leader. The business will cover
all agrochemical activities as well as biotechnology and seeds. "We will
unite the existing strengths of the two companies to achieve an outstanding
product offering to our customers on a global level. The return on sales is
planned to reach 20 percent by 2005," Wulff continued. Preparations for the
integration have been started.
Bayer CropScience will be headquartered in Monheim, Germany, and the two
principal ACS sites at Lyons, France, and Frankfurt, Germany, will continue to
play significant roles in the new company.
The StarLink technology and all potential related liabilities will be
excluded from the transaction and remain only with Aventis, so Bayer will not
be liable for any potential claims.
Duly observing the rights of the employee representatives and subject to
the approval of the relevant authorities, closing -- the legal transfer of
ownership -- is expected for the first quarter of 2002. Bayer plans to
finance the purchase through new borrowings without increasing equity capital.
Bayer is an international, research-based group with major businesses in
health care, agriculture, polymers and specialty chemicals. With some
122,000 employees worldwide at the end of 2000, the Group recorded net income
for the year of EUR 1.8 billion on sales of EUR 31 billion. Capital
expenditures in 2000 amounted to EUR 2.6 billion, R&D expenses to EUR
2.4 billion.
Contact:
Bayer AG: Guenter Forneck, phone +49 214 30 50446
E-mail: guenter.forneck.gf@bayer-ag.de
Bayer Corporation: Greg M. Coffey, phone 816-242-2559
E-mail: greg.coffey.b@bayer.com
Bayer Corporation: David B. Reeder, phone 412-777-5666
E-mail: david.reeder.b@bayer.com
Aventis S.A.: Carsten Tilger, phone +33 3 8899 1114
E-mail: carsten.tilger@aventis.com
Schering AG: Dr. Friedrich von Heyl, phone +49 30 468 15296
E-mail: friedrich.vonheyl@schering.de
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known and
unknown risks, uncertainties and other factors could lead to substantial
differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. The
company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.
SOURCE Bayer
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http://www.bayerus.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/092575.html
CONTACT:
Bayer AG: Guenter Forneck, +49 214 30 50446,
or guenter.forneck.gf@bayer-ag.de; or Bayer Corporation: Greg M.
Coffey, +1-816-242-2559, or greg.coffey.b@bayer.com; or Bayer
Corporation: David B. Reeder, +1-412-777-5666, or
david.reeder.b@bayer.com; or Aventis S.A.: Carsten Tilger, +33 3
8899 1114, or carsten.tilger@aventis.com; or Schering AG: Dr.
Friedrich von Heyl, +49 30 468 15296, or
friedrich.vonheyl@schering.de
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