Sanofi said on Monday (Oct 21) it had entered exclusive talks for the sale of a 50 per cent controlling stake in its consumer health business Opella to US private equity firm Clayton Dubilier & Rice (CD&R).
The French pharmaceutical company, which is joining a growing number of drugmakers shedding consumer related businesses, said its Opella business had been valued at around US$17 billion, or 14 times estimated core earnings (Ebitda) for 2024.
Reports that a deal was close have triggered criticism from government opponents in recent weeks over the potential loss of a strategic asset, prompting workers to strike and rival bidder PAI Partners to make a renewed offer for the business.
French government sources said late Sunday that Sanofi had reached an agreement on terms of the deal after providing Paris with guarantees on maintaining jobs and production in France.
French public investment bank Bpifrance is expected to become a minority shareholder, taking a stake of around 2 per cent, said Sanofi in a statement.
Speaking to reporters on Monday about its choice of buyer, chief executive Paul Hudson said: “We chose the group with the best capabilities and people that would help us enable the long term success of the business.”
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He added that while there was no timeline for how long Sanofi would be involved in Opella, “we expect to be involved and in partnership for a long time”.
Opella employs 11,000 people globally and sells popular French pain medicine Doliprane, as well as brands including Mucosolvan cough syrup, Allegra allergy treatments and Buscopan pain relief.
The proposed transaction, still subject to definitive agreements and statutory approvals, is expected to close in the second quarter of 2025 at the earliest, said Sanofi.
The company, which said a year ago that it was reviewing separation scenarios for its consumer health business, has said it would use proceeds from the sale to provide more resources for the costly development of novel immunology and inflammation drugs.
Sanofi also upgraded its earnings per share (EPS) guidance, saying it expects its 2024 EPS excluding Opella to increase by at least a low-single digit percentage at constant exchange rates.
Including Opella, it would have upgraded its EPS estimate to between stable and low single-digit percentage growth from previously stable, it said. REUTERS
