Transaction of 3.9 Billion Dollars Bayer and Lanxess Sell Stakes in Chemical Park Operator Currenta
Bayer and Lanxess sell their stakes in the chemical park operator Currenta to funds managed by Macquarie Infrastructure and Real Assets (Mira), the world's largest infrastructure investor. Both companies signed corresponding agreements on August 6, 2019.
Leverkusen/Germany — Currenta manages and operates infrastructure, energy supply and other essential services across the chemical parks in Leverkusen, Dormagen and Krefeld-Uerdingen and is currently a joint venture of Bayer (60 %) and Lanxess (40 %). Now, the two chemical companies have signed an agreement to sell their stakes in the chemical park operator to Mira. Currenta, including a transferred real estate portfolio by Bayer, is valued with a total enterprise value of $ 3.9 billion before deduction of net debt and pension obligations.
Dr. Hartmut Klusik, member of the Board of Management and Labor Director of Bayer commented that Mira had a long term focus and will would be a reliable employer for the company's workforce. Bayer and Mira have reached an agreement on long-term service and supply contracts, he added.
Bayer’s 60 % stake in Currenta has an equity value of approximately $ 1.31 billion (after deduction of net debt and pension obligations). In addition, in order to strengthen the Group, the chemical group is selling to it an extensive package of real estate and infrastructure for $ 202 million.
Bayer had announced in November 2018 that it was looking to sell its stake. The main reasons behind this are that the group's position as a Chempark customer has changed following the carve-out of Covestro and that Bayer has stepped up its focus on its core activities. The company expects its part of the transaction to close in the fourth quarter of 2019.
Lanxess as one of Currenta's main customers will provide the new owner with operational support during the transition phase and will therefore continue to hold its stake for several months longer. Thus, the company expects its transaction to be completed by the end of April 2020. The 40 % stake accounts for an equity value (after deduction of net debt and pensions) of approximately $ 874 million pre tax. In addition, the speciality chemicals company is entitled to a profit participation until completion of the transaction. Moreover, the company has reached an agreement with Mira on service and supply contracts for the three sites in Leverkusen, Dormagen and Krefeld which will initially run for 10 years. Lanxess operates a significant portion of its global production facilities there.