Apollo To Take $3.4-Bn Equity Stake in Bayer’s Contraceptive Business
Apollo, a private equity firm, has announced a EUR 3-billion ($3.4 billion) equity capital investment in Bayer’s long-acting reversible contraceptives (LARC) business.
Under the agreement, Apollo-managed funds and affiliates will obtain a minority, non-controlling stake in a newly established entity holding Bayer’s LARC business. Bayer will retain a majority stake in the entity and will continue to exercise complete operational control over the business.
The transaction provides a capital infusion into Bayer’s pharmaceutical business as Bayer faces financial strain in its crop-protection business related to litigation stemming from Roundup, a glyphosate-based herbicide, which Bayer gained through its $63-billion acquisition of Monsanto in 2018. The Monsanto acquisition was the largest in the company’s history and put its crop-protection business as the largest segment in Bayer. Overall, in 2025, Bayer posted total worldwide sales of EUR 45.6 billion ($52.2 billion). It has three main businesses: crop science, pharmaceuticals and consumer healthcare. In 2025, revenues in its crop science business accounted for EUR 21.6 billion ($24.7 billion), or 47% of total revenues, and its pharmaceutical business for EUR 17.8 billion ($20.4 billion), or 39%. Its consumer healthcare business had 2025 revenues of EUR 5.8 billion ($6.6 billion), or 13% of total revenues. Bayer is pursuing several measures to manage and mitigate the risks of Roundup™ litigation
Since the Monsanto acquisition, Bayer has faced litigation and financial burden, and it continues to pursue several measures to manage and mitigate the risks of the Roundup litigation in the US. In February (February 2026), Bayer proposed a $7.25-billion US nationwide class settlement (still pending approval) through a long-term claims program designed to resolve current and future claims over Roundup in which claimants allege Non-Hodgkin lymphoma injuries. Last month (June 2026), the US Supreme Court provided a favorable decision for Bayer to bring containment to the Roundup litigation by preempting conflicting state-law- based warning claims. Also, earlier this month (July 2026), Bayer announced the consolidation of its US glyphosate business into a subsidiary, Ruveon, as part of a strategy to revamp its crop protection business.
The Apollo transaction is expected to close in the third quarter of 2026, subject to approval by antitrust authorities and customary closing conditions.
