BASF $5.9 Billion acquisition of Bayer’s seed and non-selective herbicide businesses

Freshfields Bruckhaus Deringer, Machado, Meyer, Sendacz e Opice, Sullivan & Cromwell, Demarest, Redeker Sellner Dahs, Dentons and Cohen & Grigsby advised on the deal

BASF has signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses. Bayer intends to divest these assets in the context of its planned acquisition of Monsanto. The all-cash purchase price is €5.9 billion, subject to certain adjustments at closing. The assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty®, Basta® and Finale® brands, as well as its seed businesses for key row crops in select markets: canola hybrids in North America under the InVigor® brand using the LibertyLink® trait technology, oilseed rape mainly in European markets, cotton in the Americas and Europe as well as soybean in the Americas. The transaction also includes Bayer’s trait research and breeding capabilities for these crops and the LibertyLink® trait and trademark.

For the full year 2016, sales of the business to be purchased from Bayer amounted to around €1.3 billion and EBITDA to around €385 million. The transaction is subject to the closing of Bayer’s acquisition of Monsanto and approval by relevant authorities. It is expected to close in the first quarter of 2018.

The acquisition complements BASF’s crop protection business, strengthening the company’s herbicide portfolio and marking its entry into the seed business with proprietary assets in key agricultural markets.

More than 1,800 commercial, R&D, breeding and production personnel shall transfer from Bayer to BASF. These employees are primarily located in the United States, Germany, Brazil, Canada and Belgium. Furthermore, BASF will acquire the manufacturing sites for glufosinate-ammonium production and formulation in Germany, the United States, and Canada, seed breeding facilities in the Americas and Europe as well as trait research facilities in the United States and Europe. “We look forward to welcoming our new colleagues to BASF. As highly experienced, dedicated and motivated professionals they will enrich our team with their expert knowledge in crop protection, seeds and traits. Together, we will shape the long-term success of BASF, serving the needs of farmers around the globe,” said Markus Heldt, President of BASF’s Crop Protection division.

Freshfields Bruckhaus Deringer advised BASF with a team including Peter Lyons (Picture), Aly El-Hamamsy, Matthew Herman, Menachem Kaplan, Claude Stansbury, Frank Montag, Rafique Bachour, Paul Humphreys, David Mitchell, Cole Randle, Carryn Vincec, Tom McGrath and Daniel Baker.

In Brazil, Machado, Meyer, Sendacz e Opice advised BASF with Adriana Pallis, Thiago Spercel, Luiz Mascaro and Murilo Bertoldi.

Sullivan & Cromwell LLP advised Bayer AG with Ronald E. Creamer Jr., Matthew G. Hurd, Juan Rodriguez, Eric M. Krautheimer, Chris Beatty, Nader A. Mousavi, Steven L. Holley, Matthew M. Friestedt, Matthew J. Brennan, Bradley P. Smith, Axel Beckmerhagen, Evan S. Simpson, Tyler T. Rosenbaum, Tyler W. Hill, RuiHui Yu, Kristen B. Klein, Eric M. Lopata, Alan J. Fishman, Patrick Gorman and Mehdi Ansari.

In Brazil, Demarest advised Bayer AG with Luciana Tornovsky, Lucas Tavares, Camila Biral, Carlos Eduardo Orsolon, Renato Poltronieri, Cassia Pizzotti, Ana Paula Schedel, Débora Sejtman, Elisa Athaide and Natalia Graton.

In Germany, Redeker Sellner Dahs advised Bayer AG with Markus Dierksmeier, Philipp Hummel and Alexander Leidig.

In Canada, Dentons advised Bayer AG with Mark Mahoney.

In Pittsburgh, Cohen & Grigsby advised Bayer AG with Chris Myers.

 

Involved fees earner: Christopher Myers – Cohen & Grigsby; Markus Dierksmeier – Redeker Sellner Dahs ; Philipp Hummel – Redeker Sellner Dahs ; Alexander Leidig – Redeker Sellner Dahs ; Luciana Cossermelli Tornovsky – Demarest; Lucas Tavares Bueno – Demarest; Débora Sejtman – Demarest; Camila Biral Vieira da Cunha Martins – Demarest; Ana Paula Pinheiro Schedel – Demarest; Carlos Eduardo Marino Orsolon – Demarest; Renato Poltronieri – Demarest; Elisa Athaide de Andrade – Demarest; Cássia Fernanda Pizzotti – Demarest; Mark Mahoney – Dentons; Adriana Pallis – Machado, Meyer, Sendacz e Opice; Thiago Spercel – Machado, Meyer, Sendacz e Opice; Luiz Mascaro – Machado, Meyer, Sendacz e Opice; Murilo Bertoldi – Machado, Meyer, Sendacz e Opice; Ronald Creamer – Sullivan & Cromwell; Matthew Hurd – Sullivan & Cromwell; Eric Krautheimer – Sullivan & Cromwell; Evan Simpson – Sullivan & Cromwell; Tyler Rosenbaum – Sullivan & Cromwell; Tyler Hill – Sullivan & Cromwell; Juan Rodriguez – Sullivan & Cromwell; Steven Holley – Sullivan & Cromwell; Bradley Smith – Sullivan & Cromwell; Axel Beckmerhagen – Sullivan & Cromwell; Chris Beatty – Sullivan & Cromwell; Alan Fishman – Sullivan & Cromwell; Nader Mousavi – Sullivan & Cromwell; RuiHui Yu – Sullivan & Cromwell; Mehdi Ansari – Sullivan & Cromwell; Matthew Brennan – Sullivan & Cromwell; Patrick Gorman – Sullivan & Cromwell; Matthew Friestedt – Sullivan & Cromwell; Kristen Klein – Sullivan & Cromwell; Eric Lopata – Sullivan & Cromwell; Peter Lyons – Freshfields Bruckhaus Deringer LLP; Aly El Hamamsy – Freshfields Bruckhaus Deringer LLP; Matthew Herman – Freshfields Bruckhaus Deringer LLP; Rafique Bachour – Freshfields Bruckhaus Deringer LLP; Paul Humphreys – Freshfields Bruckhaus Deringer LLP; Cole Randle – Freshfields Bruckhaus Deringer LLP; Menachem Kaplan – Freshfields Bruckhaus Deringer LLP; Carryn Vincec – Freshfields Bruckhaus Deringer LLP; Frank Montag – Freshfields Bruckhaus Deringer LLP; Thomas McGrath – Freshfields Bruckhaus Deringer LLP; Daniel Baker – Freshfields Bruckhaus Deringer LLP; Claude Stansbury – Freshfields Bruckhaus Deringer LLP; David Mitchell – Freshfields Bruckhaus Deringer LLP;

Law Firms: Cohen & Grigsby; Redeker Sellner Dahs ; Demarest; Dentons; Machado, Meyer, Sendacz e Opice; Sullivan & Cromwell; Freshfields Bruckhaus Deringer LLP;

Clients: BASF; Bayer;