Bayer sells €3 billion contraceptives stake to Apollo

Bayer announced on Friday that it has secured €3 billion ($3.4 billion) in equity capital from funds managed by Apollo Global Management ↗ 1.41% through a deal involving its long-acting reversible contraceptives business, as the German conglomerate moves to shore up a balance sheet weighed down by debt and litigation costs.reuters+2

Under the agreement, Apollo-managed funds will obtain a minority, non-controlling stake in a newly established entity holding Bayer's long-acting reversible contraceptives unit, while Bayer retains majority ownership. The transaction is expected to close in the third quarter of 2026, subject to antitrust approval and other customary closing conditions.live.euronext+3

A Lifeline for Bayer's Balance Sheet

The deal comes as Bayer grapples with heavy financial pressures. The company's net financial debt stood at €32.5 billion at the end of the first quarter of 2026, up from €29.8 billion at the close of 2025, driven largely by litigation-related payouts. CEO Bill Anderson has been steering a turnaround effort since taking the helm, telling shareholders in April that the company expects to "enter 2027 stronger" but that the work remains unfinished.reports.bayer+1

The contraceptives portfolio at the center of the deal includes Mirena, Kyleena, and Jaydess — products that together generated about €1.4 billion in sales in 2025, according to Bloomberg. By structuring the transaction as a minority stake sale rather than an outright divestiture, Bayer maintains operational control over the business while unlocking capital to address its debt burden.news.bloomberglaw+1

Apollo's Growing Health Care Footprint

For Apollo, the investment fits a broader pattern of deploying capital into health care assets with stable, recurring revenue streams. The private equity firm has increasingly pursued structured deals that fall between traditional buyouts and lending, offering companies like Bayer flexible capital without requiring them to cede control.peinsights.substack

Bayer shares rose on the news. The company had signaled its intent to pursue strategic options for parts of its portfolio as it works to restore financial flexibility, and Anderson indicated in May that the company is ready for a "careful but aggressive" return to pharmaceutical acquisitions after spending years on the defensive.endpoints

What Comes Next

The Apollo deal marks one of the largest steps yet in Anderson's turnaround plan. With the proceeds earmarked for improving Bayer's capital structure, the transaction may help the company regain the financial footing it needs to pursue growth through acquisitions and pipeline investment — priorities Anderson has outlined repeatedly in recent months.bayer+1