Bayer has agreed a €3 billion (about $3.4 billion) equity deal with funds managed by Apollo Global Management tied to its long-acting reversible contraceptives (LARC) unit, in a move designed to strengthen its balance sheet while retaining operational control of the business. Under the transaction structure, Apollo-managed funds and affiliates will take a minority, non‑controlling stake in a new entity that will hold Bayer’s LARC operations, while Bayer keeps a majority interest and full operational control; the business will remain part of the pharmaceuticals division and continue to be fully consolidated in Bayer’s group accounts.
Bayer Chief Financial Officer Judith Hartmann described the arrangement as a “strategic financing solution” intended to bolster the company’s capital structure and increase financial flexibility at a time when Bayer faces heightened liquidity needs, including upcoming bond maturities and ongoing litigation-related payments. The capital injection is expected to help Bayer manage these pressures without divesting control of a business it still regards as core to its pharma portfolio.
The deal, which reflects growing investor interest in women’s health and contraceptive technologies, is expected to close in the third quarter of 2026, subject to antitrust clearance and customary closing conditions. For Apollo, the investment offers exposure to a global contraceptives player through a structured minority stake, while for Bayer it represents a way to unlock value from a key asset and support its broader restructuring and debt‑management efforts without an outright sale.
