Bayer to divest Environmental Science Professional business

Bayer announced on Feb. 24 its intent to divest the company’s Environmental Science Professional business (ES) as part of “plans to accelerate the strategy implementation of its Crop Science division.”

Some of the products Bayer is known for in the lawn and landscape market are Specticle, Celsius, Topchoice, Merit and Tribute Total.

After the company issued a press release, which you can read below, Lawn & Landscape's sister publications Pest Control Technology and Golf Course Industry spoke with Gilles Gaillou about the announcement. Here were some takeaways.

Bayer had long considered divesting ES, Gaillou said, and the decision to do so now was based on “a focus on the transformation and the investments that Bayer Crop Science wants to do in the ag world,” and that for the investments ES needs to move forward, “maybe those investments are better placed outside.”

The division conducts business on multiple continents and Bayer devoted significant time following the announcement communicating with employees about how the divestment will impact current operations and interactions with customers.

“This is not going to affect our employees and it’s not going to affect our relationship with our customers,” Galliou says. “This case is based on growth and it’s not based on cost management and, therefore, we will continue to fully engage our customers with the team that we have today. During the whole process, our number one focus will be to maintain the service and the product and the engagement we have toward our customers. It’s not going to affect that relationship. Our expectation is that it will maybe bring additional opportunities in the short and mid-term to those customers and employees.”

The decision to divest Environmental Science will begin a lengthy separation process.

“It’s just the beginning of the evaluation of Environmental Science being an independent company and it’s a process that is going to bring us to mid-2022 before it’s finalized,” Galliou says. “So it’s a marathon, it’s a long process. It’s not easy to separate a fully integrated division.”

Below is the official press release from the company.

MONHEIM – Bayer has announced a series of decisions to accelerate the strategy implementation of its Crop Science division. In order to focus on its core agricultural business, this includes the intent to divest the company’s Environmental Science Professional business. It encompasses environmental solutions to control pests, disease and weeds in non-agricultural areas such as vector control, professional pest management, industrial vegetation management, forestry and turf and ornamentals.

To further drive performance and growth in the division’s commercial region, Bayer has named Dr. Jacqueline M. Applegate to lead the Crop Science North America region effective March 1, 2021. She currently heads the division’s Environmental Science and Vegetable Seeds businesses. In addition to her appointment, the company named Dr. Jeremy Williams, currently Global Head of Plant Biotechnology at Crop Science, as new head of the Climate Corporation and Digital Farming, and Tom Armitage from Mondelez as head of Global Communications for Crop Science. Both are effective March 15, 2021. All three leaders will join the Crop Science Executive Leadership Team and will play key roles in accelerating the division’s transformation.

In addition, Bayer appointed Gilles Galliou, currently head of commercial operations for Bayer Vegetable Seeds Americas, to lead the Environmental Science business and the planned divestment. The global Environmental Science business will be headquartered in Cary, North Carolina, effective June 1, 2021. Inci Dannenberg, currently head of global strategic marketing for Vegetable Seeds, was also appointed to run the Crop Science global Vegetable Seeds business, which is headquartered in St. Louis, Missouri. Both appointments are effective from March 1, 2021.

“With the announced portfolio and leadership changes, and important new product approvals for soybeans, corn and cotton in the Americas, we are now shifting gears from integration to growth acceleration. We are laser-focused on commercial execution and on transforming agriculture through innovation that benefits farmers, consumers and our planet,” said Liam Condon, member of the board of management of Bayer AG and president of the Crop Science division. “Like farmers everywhere, we have faced challenges in the past few years; however, I am very excited about the outlook for our Crop Science business. The global coronavirus pandemic has made it clear how important agriculture and a sustainable food system are, and the crucial role science can play in solving difficult problems. Driving innovation, accelerating the digital transformation of agriculture and helping decarbonize the food system are at the core of our vision to feed a growing population without starving the planet.”