Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Bayer Maps Spinoff Plans CEO Expects Public Offering by Mid-2016 for Plastics/materials Division Materialscience

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Bayer Maps Spinoff Plans CEO Expects Public Offering by Mid-2016 for Plastics/materials Division Materialscience

Article excerpt

German drug and chemical giant Bayer AG elaborated Thursday on plans to spin off its plastics and materials segment through a public stock offering by mid-2016, and its chief executive said he did not expect any buyers to pick up the business in the meantime.

"We believe the independent floating of MaterialScience is best for all stakeholders," Marijn Dekkers said in an interview with Bloomberg TV following the release of Bayer's third-quarter results. A possible sale "is not in the cards," he said.

Bayer MaterialScience - which makes plastics, chemicals and coatings used in foams, insulations, car parts, DVDs, among other products - maintains its North American headquarters at Bayer's campus along the Parkway West in Robinson. The company has about 2,200 workers in the region, including 1,200 at Robinson and 1,000 at a Bayer HealthCare business formerly known as Medrad.

Officials at Bayer's local operations declined to comment on Thursday's news.

The company in September confirmed it would separate the MaterialScience operation, following months of speculation about whether Bayer would divest the business. It did not provide any details at the time.

In conjunction with a third-quarter earnings release Thursday, Bayer said the unit will be floated on the stock market by mid-2016 "at the latest" so that it will have direct access to capital markets and be positioned to grow further as a separate, industrial company.

Bayer has made no secret of its wish to focus its energies on two other business subgroups: health care and crop sciences. …

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