The Munich-based agricultural and trading conglomerate BayWa has passed a significant milestone in its corporate overhaul. The company finalized the divestment of its Dutch subsidiary, Cefetra Group, to a consortium of investors on February 25. This transaction removes more than €600 million in liabilities from its balance sheet. However, the path to its stated debt-reduction target of €4 billion by 2028 remains long, with the planned sale of its energy subsidiary, BayWa r.e., representing the largest uncertainty.
Leadership in Transition Amid Operational Shifts
Parallel to its operational restructuring, BayWa is undergoing a change in executive leadership. The current CEO, Dr. Frank Hiller, will step down by mutual agreement on July 31, 2026. The company has emphasized that its restructuring program is proceeding according to plan, stating that key debt-reduction milestones have been met, operational competitiveness has been stabilized, and long-term liquidity has been secured.
Cefetra Divestment Eases Debt Burden
While the consortium paid a purchase price of €125 million—precisely the amount BayWa spent to acquire the business back in 2012—the deal’s primary financial impact lies elsewhere. The deconsolidation of Cefetra’s balance sheet erases over €600 million in loans and obligations. This means the reduction in total liabilities is nearly five times greater than the cash proceeds from the sale.
This agreement concluded on the second attempt. An initial sale effort to Dutch entrepreneur Peter Goedvolk collapsed in the autumn of 2025, despite receiving clearance from the EU Commission, when financing from his First Dutch Group fell through. In December, BayWa identified a new buying consortium comprising eight undisclosed investors.
Cefetra Group supplies agricultural raw materials to the global animal nutrition, food additive, and energy industries. The group encompasses 17 companies operating from more than 35 locations worldwide.
Should investors sell immediately? Or is it worth buying BayWa?
Debt Reduction: One-Third of the Journey Complete
Combined with the prior sales of RWA, WHG, and EDL completed in 2025, BayWa has now lowered its bank debt by approximately €1.3 billion in total. Although this is a substantial sum, it represents only about one-third of the €4 billion debt-reduction goal set for 2028.
The remaining €2.7 billion is expected to come predominantly from the planned disposal of the renewable energy subsidiary, BayWa r.e. Media reports suggest the conglomerate is banking on roughly €2 billion from this sale. This is where the central challenge now lies.
BayWa r.e. Faces Headwinds
The business of this wind and solar park developer has deteriorated. The political climate for renewable energy has soured in both the United States and Europe. In the U.S., government policy has significantly complicated operations, putting pressure on the unit’s valuation and, consequently, the potential proceeds from a sale.
BayWa’s board of management has stated that the forecast for its Regenerative Energies segment, as well as for the group as a whole, can no longer be considered reliable. A delay in publishing the 2025 annual and consolidated financial statements is also a possibility. Whether the intended sale by the end of 2028 can yield the projected €2 billion has become doubtful.
The sale of Cefetra marks a tactical victory for BayWa. Yet the decisive battle is still on the horizon. Successfully divesting BayWa r.e. under the calculated terms would put the restructuring firmly on track. Should this deal fail or the proceeds fall significantly short, the Munich-based traditional group will face considerable pressure. Reliable financial data anticipated in the coming weeks will reveal whether the 2028 recovery plan remains a realistic prospect.
Ad
BayWa Stock: Buy or Sell?! New BayWa Analysis from February 28 delivers the answer:
The latest BayWa figures speak for themselves: Urgent action needed for BayWa investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 28.
BayWa: Buy or sell? Read more here...
