Bayer on Monday unveiled a new name and colorful corporate logo for Bayer MaterialScience, its plastics and chemicals business that will begin operating as an independent subsidiary of the giant German pharmaceuticals company on Sept. 1.
The new name, Covestro, combines letters and terms that underscore the identity of the business, Bayer said: collaboration; investment in cutting-edge facilities; and strong markets, innovation and workforce.
“It’s a new beginning, but we’re not losing our history,” said Jerry MacCleary, president of the Bayer MaterialScience North American operations, based in Robinson. “Any change from the Bayer name is a big change, but we see a lot of positive things going forward.”
Bayer said it plans to float the unit on the stock market “by mid-2016 at the latest.” From Sept. 1 until the stock offering occurs, Covestro will be wholly owned by Bayer.
The German company last year disclosed its plans to spin off the material sciences division, saying it wanted to focus on investing in its other divisions that make prescription and over-the-counter drugs, and animal health and crop-protection products.
The change will release funds that Bayer is likely to use for future acquisitions. Last year, it bought Merck’s over-the-counter drug business for $14.2 billion in a deal that added Coppertone sun lotions and Dr. Scholl’s foot products to its portfolio of consumer brands that already includes Bayer aspirin, Aleve and One-a-Day vitamins.
Bayer MaterialScience makes plastics and chemicals used in automobiles, electronic equipment, insulation and for other applications.
Analysts have speculated the business could generate about $12 billion for the parent company.
Bayer’s global sales for all its divisions last year totaled 42.2 billion euros, or $46.1 billion, and the company employed nearly 119,000 worldwide.
Mr. MacCleary said Bayer believes it’s prudent to spin off material sciences “because it would be more advantageous for it to be on its own going to market and raising capital.”
“I think it’s going to be a very positive thing for our business and our culture,” he said.
At the Robinson campus, Mr. MacCleary said, Covestro will employ more than 800 and total North American employment should remain at the current count of about 2,700 employed by Bayer MaterialScience.
Another 600 to 700 Bayer workers will remain in Robinson but will work directly for Bayer Corp. in administrative functions for the company’s pharmaceuticals and agricultural products divisions. Bayer also employs about 1,000 in the region at a Bayer HealthCare business unit.
In Robinson, there could actually be an uptick in employment as the company seeks to hire more than 50 people for jobs such as human resources, accounting, information technology and legal services related to what Mr. MacCleary called “the carve-out” of material sciences.
“We are in a hiring process, and it’s at a critical stage right now,” he said.
Within the Bayer complex that overlooks the Parkway West near Settlers Cabin Park, Covestro will fill six buildings and possibly parts of several others while Bayer corporate employees will occupy three to four buildings, said Mr. MacCleary.
While buildings are being refitted for the split in operations, employees over the next three months will be pushing to provide support for the Covestro name by rebranding signage, marketing pieces, packaging and other materials.
The prominent Bayer sign along the Parkway West that features the company’s iconic aspirin logo will remain and a new sign for Covestro is being planned for the hillside, said Bob Walker, company spokesman.
“We’re looking forward to a real visible launch Sept. 1 and some real strong visibility for this company going forward,” Mr. Walker said.
Joyce Gannon: jgannon@post-gazette.com or 412-263-1580.
First Published: June 1, 2015, 1:33 p.m.
Updated: June 2, 2015, 1:30 a.m.
