Bayer divests HR Starck with an eye on Schering acquisition

Bayer has announced the sale of its HC Starck subsidiary to Advent International and The Carlyle Group, explaining that income from this sale will assist in the financing of the acquisition of Schering AG.

HC Stark was sold to the companies at auction for approximately 1.2 billion euro (812.7 million pounds), with 700 million euro in cash, with personnel related aspects and the assumption of debt by the purchasers equalling 450 million euro.

Dr Heinz Heumuller, HC Starck Managing Director, said: “Advent and Carlyle are ideal partners for our future expansion. With their support we will continue to pursue our corporate strategy and business objectives and work to further improve performance.”

Bayer reported that it was convinced that the company would have good prospects for development under Advent International and The Carlyle Group.

Earlier this month, Bayer announced that the path was clear for the integration of Schering into the Bayer Group. The company reported in March that the sale of its HC Starck and Wolff Walsrode subsidiaries would be used to partially finance the acquisition of Schering AG.

In September, Bayer reached the 95 per cent threshold of shares in Schering AG, permitting a compulsory buyout of minority stockholders.