Bayer acquires Bomac, takes animal health to world

Bayer to strengthen Animal Health business in Asia Pacific and Latin America

News Release

Embargoed to 12.30pm NZ time, 3 November, 2010.

Auckland, New Zealand, 3 November, 2010 – Bayer AG has announced the acquisition of Auckland based Bomac Group after both parties today signed a purchase agreement. With the acquisition Bayer will strengthen its worldwide Animal Health business, placing a special emphasis on emerging markets in the southern hemisphere.

It is planned to close the transaction upon receipt of the necessary regulatory approvals, expected in early 2011, and begin combining the two businesses thereafter.

Due to confidentiality obligations, no financial information regarding the transaction is available.

Both companies regard the acquisition as a promising new phase in their business development. The transaction represents a fit in all important aspects of the businesses including product portfolio and areas of innovation, with strong similarities in culture.

“It is a win-win situation for both companies,” says Dr Alexander Jahn, Head of Region International within Bayer Animal Health. “With Bomac we found a company, where we can capture local innovation and lever it across the fastest growing markets in the world.”

Connel McLaren, Managing Director of Bomac also remarks on the positive aspects of the acquisition. “We chose Bayer as the perfect partner to help us take our innovation beyond Australasia. They share our belief that New Zealand is an ideal place to undertake new product development and we also share the same values and commitments towards our customers and employees.”

He added, “Bayer’s commitment to expanding our research and development (R&D) activity is a great outcome for New Zealand. Bayer will benefit from Bomac’s R&D expertise, especially with respect to mastitis management and parasite control. Mastitis is a serious disease in livestock which needs highly effective treatments. The growing demand for protein is also especially important for emerging animal health markets in Asia Pacific and Latin America.”

Both companies have successful businesses in Australia and plan to further expand their combined product offering across the Tasman.

Employees of Bayer Animal Health New Zealand and Bomac– both with headquarters in Auckland – have been informed of the acquisition, as have their respective businesses in Australia.

About Bomac

Founded in 1958 Bomac is New Zealand’s largest privately owned dedicated animal health company.

Operating from modern GMP facilities in Auckland the company manufactures more than 290 production animal, equine and companion animal products for sale in New Zealand and to over 60 countries worldwide.

A significant commitment to R&D has seen Bomac average over 20 new product approvals per year in New Zealand since 2007. These include innovative mastitis and reproduction products, injectable solutions and suspensions, intra-ruminal devices, and sheep, cattle and equine parasiticides.

This enviable track record of new products and delivery systems has underpinned the company’s continued growth as Bomac and its 200 staff in New Zealand and Australia strive to be “First for Animal Health”. For more information visit www.bomac.co.nz.

About Bayer HealthCare

The Bayer Group is a global enterprise with core competencies in the fields of healthcare, nutrition and high-tech materials. Bayer HealthCare, a subsidiary of Bayer AG, is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Bayer Schering Pharma, Consumer Care and Medical Care divisions. Bayer HealthCare’s aim is to discover, manufacture and market products that will improve human and animal health worldwide. Employing some 106,000 people worldwide, and nearly 1,000 in Australia and New Zealand, the Bayer Group has a portfolio of over 10,000 products and operations in nearly all countries of the globe. Worldwide operations are managed from Group headquarters in Leverkusen, Germany.

With a turnover of EUR977 million (2009) Bayer HealthCare’s Animal Health Division is one of the world’s leading manufacturers of veterinary drugs. The division manufactures and markets more than 100 different veterinary drugs and care products for livestock and companion animals.

For more information on Bayer visit www.bayer.co.nz

ENDS

Forward-Looking Statements

This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayer_Factsheet.pdf
Bomac_Factsheet.pdf

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