Apollo agreed to acquire a minority stake in Bayer's long-acting reversible contraceptives business for €3 billion ($3.43 billion), the companies announced. The transaction, expected to close in the third quarter of 2026, creates a new entity housing the German pharmaceutical giant's intrauterine device portfolio and related products.

Bayer will retain a majority stake and full operational control over the business, which generates revenue from contraceptive methods preventing pregnancy for extended periods. The structure allows Bayer to unlock capital while maintaining strategic oversight of a franchise that competes in the women's health market alongside offerings from CooperSurgical and AbbVie.

Apollo gains exposure to a specialized pharmaceutical asset with recurring revenue characteristics, adding to its growing healthcare portfolio. The deal values the contraceptives unit at roughly 3.5 times its estimated annual sales of €850 million, based on Bayer's prior disclosures about the franchise's performance.

The transaction signals continued private equity appetite for niche pharmaceutical assets with defensive demand profiles. For Bayer, the proceeds support deleveraging efforts amid ongoing litigation costs and a broader portfolio review. Investors should monitor whether this minority-stake model becomes a template for other European pharma groups seeking non-dilutive financing without ceding operational authority.