Financial Statements

6.3 Divestitures

Divestitures in 2014

The effects of divestitures made in 2014 and previous years on the consolidated financial statements for 2014 are detailed below.

On August 29, 2014, Consumer Health completed the sale of the Interventional device business to Boston Scientific Corporation, Natick, Massachusetts, United States. The sale comprised the AngioJetTM thrombectomy system and the JetstreamTM atherectomy system, as well as the FetchTM2 aspiration catheter used in cardiology, radiology and peripheral vascular procedures. The total transaction price, including fees for transitional services to Boston Scientific and before working capital adjustments, was €315 million. Disregarding the transitional services, a special gain of €80 million and deferred income of €2 million were recognized.

On October 1, 2014, the strategic pharmaceutical collaboration agreed between Bayer and Merck & Co., Inc., United States, in the area of soluble guanylate cyclase (sGC) modulation came into effect. Pharmaceuticals and Merck Co., Inc. assumed joint control of the sGC modulators business. The collaboration agreement provides for future net cash flows to be equally shared between Bayer and Merck & Co., Inc. Of the goodwill allocated to the Pharmaceuticals segment, €173 million was derecognized through profit or loss as of the date the collaboration came into effect.

The effects of these and other, smaller divestitures made in 2014 were as follows:

Divested Assets and Liabilities [Table 4.20]
 20132014
 € million€ million
Goodwill286
Patents and technologies62
Other intangible assets17
Property, plant and equipment1318
Other noncurrent assets2
Inventories10
Other current assets4
Other provisions(2)
Other liabilities(3)
Divested net assets12395
Net cash inflow from divestitures79304
Changes in future cash payments receivable(25)
Deferred income2
Net gain/(loss) from divestitures (before taxes)42(93)

Of these divested assets and liabilities, €354 million were reported in previous quarters as held for sale.

In December 2014, Consumer Health signed an agreement to sell two equine products, Legend/Hyonate and Marquis, to Merial, Inc. A sale price of us$135 million was agreed. The transaction is subject to various conditions, including antitrust approvals, and is expected to close in the first quarter of 2015.

Divestitures in 2013

On June 1, 2013, MaterialScience sold its global powder polyester resins business and its u.s.-based liquid polyester resins merchant business to Stepan Company of Northfield, Illinois, United States. A purchase price of €45 million was agreed. The divestment gain of €42 million was reported under special items.

The Bayer Group received further revenue-based payments of €25 million in 2013 in connection with the transfer of the hematological oncology portfolio to Genzyme Corp., United States, effected in May 2009.

Last updated: February 26, 2015  Copyright © Bayer AG
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