Bayer to sell diagnostics business to Siemens for EUR 4.2 billion
The Bayer Group plans to sell the diagnostics Division of Bayer HealthCare to Siemens AG, Munich, Germany, for EUR 4.2 billion. The divestment was approved by the Bayer Supervisory Board. "This decision is fully in line with our strategy for systematically aligning our health care business. We are concentrating on pharmaceuticals for both humans and animals, and products that can be promoted directly to patients," explained Bayer AG Management Board Chairman Werner Wenning.
The systems business of the Diagnostics Division, with its emphasis on hardware, IT networking and comprehensive equipment service, is subject to different success factors than the other Bayer HealthCare divisions. Wenning said Bayer is therefore divesting these activities as part of the consolidation phase in the diagnostics market. "We are convinced that the successful laboratory equipment business has even better long-term development prospects in a company specializing in medical technology," he added. Closing of the transaction is expected for the first half of 2007, subject to the approval of the antitrust authorities.
The consumer-influenced Diabetes Care Division is not affected by the transaction, nor is the contrast agents (diagnostic imaging) business of Schering AG, which will form an important part of the future Bayer Schering Pharma AG.
"Bayer HealthCare Diagnostics has grown considerably faster than the market in terms of earnings and profitability over the past three years. So now is the right time to divest this successful business and thereby add value for the Bayer Group. Siemens is the ideal company to continue developing Bayer HealthCare Diagnostics as a core business," commented Arthur Higgins, Chairman of the Board of Management of Bayer HealthCare AG.
"With this acquisition we are continuing to consistently pursue our strategy of building the industry's first integrated diagnostics company that combines diagnostic imaging, laboratory diagnostics and clinical information technology under one roof right along the value chain. The aim is to enable trend-setting innovations that improve the quality of health care through early, specific and efficient diagnostic solutions and thus to address the growing global demand for superior health care solutions," commented Erich Reinhardt, CEO and President of Siemens Medical Solutions and member of the Managing Board of Siemens AG.
For Bayer the after-tax proceeds of the divestment will be about EUR 3.6 billion. Although this transaction has been pursued irrespective of the Schering acquisition and its financing, it will affect it in that the planned EUR 1.3 billion hybrid bond may not be launched or may have a much smaller volume. In addition, the previously announced equity raising of up to EUR 4 billion in connection with the Schering acquisition is now likely to be reduced by EUR 500 million. In March this year Bayer had already issued a mandatory convertible bond in the amount of EUR 2.3 billion as a first step. "The effect of this divestment is to substantially reduce our debt, thus helping to improve our credit profile," said Wenning
Other news from the department business & finance
These products might interest you
tritec® Chromatographic refrigerators by tritec für Labortechnik und Umweltsimulation
Energy-efficient chromatography refrigerators for precise temperature control
Safe storage of your HPLC systems at -5 °C to 20 °C with modern touchscreen display
Mars 6 by CEM
Everything under Control - with This Intelligent Microwave Digestion System
High Sample Throughput with Just One Click
CrystalBreeder by Technobis
CrystalBreeder: the next generation multi-reactor crystallization platform
Enhance your early stage solid state screening. New: controlled evaporation & vapor diffusion modes
Crystal16 by Technobis
Crystal16 - the ultimate instrument for research and process development
Upgrade your crystallization screens with the next generation benchtop crystallization system
OHAUS Laboratory equipment by Ohaus
Do More with OHAUS Laboratory Equipment
Do Not Limit Yourself to Just Measurement! Discover Ingenious Portfolio
FlowSyn and FlowSyn Maxi by Uniqsis
Continuous Flow Chemistry Systems for reaction optimisation and scale up
Perform reactions up to 300°C and 100 bar from 0.1 - 100 ml /minute
Get the analytics and lab tech industry in your inbox
From now on, don't miss a thing: Our newsletter for analytics and lab technology brings you up to date every Tuesday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
More news from our other portals
See the theme worlds for related content
Topic world Diagnostics
Diagnostics is at the heart of modern medicine and forms a crucial interface between research and patient care in the biotech and pharmaceutical industries. It not only enables early detection and monitoring of disease, but also plays a central role in individualized medicine by enabling targeted therapies based on an individual's genetic and molecular signature.
Topic world Diagnostics
Diagnostics is at the heart of modern medicine and forms a crucial interface between research and patient care in the biotech and pharmaceutical industries. It not only enables early detection and monitoring of disease, but also plays a central role in individualized medicine by enabling targeted therapies based on an individual's genetic and molecular signature.
