The smell of money

Bayer plans to sell its subsidiary Haarmann & Reimer to EQT Northern Europe Private Equity Funds for 1.66 billion Euros.

Bayer plans to sell its subsidiary Haarmann & Reimer (H&R) for 1.66 billion Euros to EQT Northern Europe Private Equity Funds, which are sponsored by Investor AB of Sweden.

The Holzminden, Germany-based fragrances and flavours manufacturer would be bought by another company into which H&R’s current competitor Dragoco, also of Holzminden, would be integrated.

The merger will create a leading fragrances and flavours company with a global presence with 5,800 employees and pro forma sales of 1,245 million Euros based on 2001 figures.

Closing of the acquisition is expected to take place in the fourth quarter of 2002 subject to the approval of the antitrust authorities.

Werner Wenning, Chairman of the Bayer AG Board of Management said that the proceeds – like those of the recent sales of Bayer’s interest in Agfa and its generics business in France and Spain – would be used to reduce debt.

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