Bayer announced that it secured €3 billion in equity capital through an agreement with Apollo to improve its capital structure. Under the agreement, Apollo-managed funds and affiliates will obtain a minority, non-controlling stake in a newly established entity holding Bayer’s long-acting reversible contraceptives business.
Bayer will retain a majority stake in the entity and continue to exercise full operational control over the business. The company said there will be no changes to the LARC strategy or business activities as a result of Apollo’s investment.
The LARC business will continue to be part of the Bayer Pharmaceuticals Division’s core operations. The entity will also remain fully consolidated in Bayer Group’s consolidated financial statements.
Bayer said the transaction provides a strategic financing solution while preserving control over a core pharmaceuticals business. The company said the added capital enhances financial flexibility as it manages increased liquidity requirements this year tied to bond maturities and litigation procedures.
For Apollo, the investment reflects its High Grade Capital Solutions platform, which provides flexible capital to large corporations. Apollo said the transaction enables Bayer to strengthen its balance sheet while retaining operational control over the business.
The transaction is expected to close in the third quarter of 2026. Closing remains subject to approval by antitrust authorities and customary closing conditions.
BofA Securities and Deutsche Bank served as financial advisors to Bayer, while Linklaters served as legal advisor. Latham & Watkins, Paul, Weiss, Rifkind, Wharton & Garrison, and NautaDutilh served as legal counsel to the Apollo funds.
Bayer is a global life sciences company focused on health care and nutrition. In fiscal 2025, the company had approximately 88,000 employees, generated sales of €45.6 billion, and reported R&D expenses of €5.8 billion.
KEY QUOTES:
“This transaction represents a strategic financing solution that strengthens our capital structure while preserving full operational control over this core pharmaceuticals business. It enhances our financial flexibility as we manage increased liquidity requirements this year related to bond maturities and litigation procedures, while continuing to execute our long-term priorities.”
Dr. Judith Hartmann, CFO of Bayer
“We are proud to invest in the LARC business of Bayer, a global life sciences leader and an iconic German company. This transaction reflects the core purpose of Apollo’s High Grade Capital Solutions platform – providing large, flexible, and bespoke capital to blue-chip corporations — enabling Bayer to strengthen its balance sheet while retaining full operational control over a core business.”
Jamshid Ehsani, Partner at Apollo
