Bayer has entered into a €3 billion (approximately $3.4 billion) equity agreement with funds managed by Apollo Global Management involving its long-acting reversible contraceptives (LARC) business. The transaction is aimed at strengthening Bayer’s financial position while allowing the company to maintain full operational control over the business.
As part of the agreement, Apollo-managed funds and affiliates will acquire a minority, non-controlling stake in a newly established entity that will house Bayer’s LARC operations. Bayer will retain a majority ownership and continue to oversee the business, which will remain within its pharmaceuticals division and continue to be fully consolidated in the company’s financial statements.
Bayer Chief Financial Officer Judith Hartmann said the deal provides a strategic financing solution that enhances the company’s capital structure and improves financial flexibility. The funding comes at a time when Bayer is managing significant liquidity demands, including upcoming bond repayments and costs related to ongoing legal proceedings. The proceeds are expected to help the company address these obligations while keeping a key business under its control.
The transaction, expected to be completed in the third quarter of 2026 pending regulatory approvals and customary closing conditions, reflects increasing investor confidence in the women’s health sector. For Apollo, the investment provides access to a leading global contraceptives business through a structured minority stake, while Bayer benefits by unlocking value from an important asset without pursuing a full divestment, supporting its broader restructuring and debt management strategy.
