Bayer has secured €3.0 billion in equity capital from global asset management firm Apollo as the German life sciences giant moves to strengthen its financial position while maintaining full control of its long-acting reversible contraceptives (LARC) business.

 

Under the agreement signed Friday, Apollo-managed funds and affiliates will acquire a minority, non-controlling stake in a newly established entity that will hold Bayer’s LARC business. Bayer will retain a majority stake and continue to oversee all operational decisions.

 

The investment will not alter Bayer’s LARC strategy or ongoing business activities. The business will remain a core part of Bayer Pharmaceuticals Division, and the new entity will continue to be fully consolidated in Bayer Group’s financial statements.

 

"This transaction represents a strategic financing solution that strengthens our capital structure while preserving full operational control over this core pharmaceuticals business,” said Bayer CFO Judith Hartmann. “It enhances our financial flexibility as we manage increased liquidity requirements this year related to bond maturities and litigation procedures, while continuing to execute our long-term priorities.”

 

The deal provides Bayer with additional financial flexibility as the company navigates higher liquidity demands linked to upcoming bond maturities and ongoing litigation matters.

 

Apollo Partner Jamshid Ehsani said, “We are proud to invest in the LARC business of Bayer, a global life sciences leader and an iconic German company. This transaction reflects the core purpose of Apollo's High Grade Capital Solutions platform – providing large, flexible, and bespoke capital to blue-chip corporations — enabling Bayer to strengthen its balance sheet while retaining full operational control over a core business.”