Germany’s Bayer said on Monday it agreed to sell its Dr. Scholl’s footcare brand to Boston-based private investment firm Yellow Wood Partners for $585 million.

Bayer said Dr. Scholl’s generated sales of $234 million in 2018.

“With the acquisition of Dr. Scholl’s, Yellow Wood Partners will create a stand-alone company in which it plans to invest in all aspects of the business to drive the growth and profitability of the brand to deliver value for all of its stakeholders,” said the companies in a statement.

“The divestiture enables Bayer to focus on building its core over-the-counter brands.”

Dana Schmaltz of Yellow Wood Partners said: “Dr. Scholl’s is the leading brand in the footcare category and we see great potential to grow the brand in its existing and other sales channels.

“The brand fits extremely well into the Yellow Wood consumer-focused business model as our firm has the operating experience from other carve-out investments to work with the Bayer employees who are continuing with the brand to build an exciting new stand-alone platform company.”

Heiko Schipper, member of Bayer’s board of management and president of Consumer Health, said: “We believe that we have found the right partner in Yellow Wood Partners to continue to invest in and grow the Dr. Scholl’s brand.

“Since Bayer took ownership of Dr. Scholl’s in late 2014, we have made progress in revitalizing the brand and developing an exciting pipeline of innovative products.

“We look forward to seeing the brand taken to the next level of success under Yellow Wood’s ownership.” 

Yellow Wood Partners will acquire the product rights to Dr. Scholl’s in the Americas and take over 30 dedicated brand personnel in the United States and Canada.

Citi and Sawaya Partners acted as financial advisors to Bayer, while Covington & Burling provided legal advice. Fried Frank acted as legal advisor to Yellow Wood.