PolymerLatex sold to Soros
4 Mar 2003
Bayer and Degussa are to sell PolymerLatex, their 50/50 joint venture, to the financial investment company Soros Private Equity Partners for 235 million Euros.
The sale of PolymerLatex completes the divestment program which Bayer launched at the end of 2001 as part of its Group-wide reorganisation. The divestments included its subsidiary Haarmann & Reimer, a 30% interest in Agfa, a large proportion of Bayer's company apartments, its generics business in France and Spain and its household insecticide business.
In addition, Bayer sold off numerous crop protection products and active ingredients which had to be divested or licensed out as a result of conditions imposed by the anti-trust authorities following its take-over of Aventis CropScience. Through the cash inflow from the divestment program Bayer has been able to cut its net debt, which had increased significantly in 2001 through the acquisition of Aventis CropScience, to less than 10 billion Euros by the end of 2002.
In fiscal 2001, PolymerLatex generated sales of 344 million Euros with about 730 employees. The joint venture, which was founded in 1996 by Degussa and Bayer, produces latex products in the paper, carpet/moulded foam and speciality applications fields.
Soros said that it intends to develop PolymerLatex's operations in the coming years and will consider possible add-on-acquisitions to consolidate its market share.
The transaction is subject to the approval of the relevant antitrust authorities.
