Sanofi Engages In Exclusive Talks With US Private Equity CD&R For Its Consumer Health Business

Sanofi SA SNY and private equity Clayton Dubilier & Rice (CD&R) have finally entered into exclusive negotiations to potentially sell and purchase a 50% controlling stake in Opella, Sanofi’s consumer health unit.  

The new step in Opella’s journey paves the way for creating a standalone player in consumer healthcare while supporting Sanofi’s strategy and increased focus on innovative medicines and vaccines.

Sanofi would remain a significant shareholder in Opella.

Also Read: Sanofi Might Face Political Hurdles In $16B Consumer Pharma Unit Sale To US Private Equity CD&R.

Bpifrance is expected to be a minority shareholder with a c.2% stake.

Headquartered in France, Opella employs over 11,000 people and operates in 100 countries. It has 13 manufacturing sites and four science and innovation development centers.

With a portfolio of brands, such as Allegra, Doliprane, and Dulcolax, Opella is the third-largest business worldwide in the over-the-counter and vitamins, minerals & supplements market (OTC & VMS), serving over half a billion consumers worldwide.

Opella operates in a fast-growing industry driven by sustainable long-term trends, such as an aging population, rising income levels, and greater health and well-being awareness.

Opella’s valuation is based on an enterprise value of c.€16 billion ($17.36 billion), corresponding to approximately 14 times the 2024 estimated EBITDA. CD&R’s offer is binding and fully financed.

The proposed transaction is anticipated to close in the second quarter of 2025.

Under the new scope, excluding Opella, preliminary business EPS in 2023 was 7.25 euros. Sanofi expects its 2024 business EPS to grow by at least a low-single-digit percentage at CER.

For 2025, Sanofi continues to anticipate a strong rebound in business EPS at CER under the previous and the new scope.

Another French private equity, PAI Partners, reportedly raised its bid for Sanofi’s consumer health division by around 200 million euros ($217.12 million).

While CD&R has emerged as the frontrunner, PAI and its partners, including Singapore’s GIC and the Abu Dhabi Investment Authority, argued that their French roots could better align with the country’s interests.

However, PAI’s lower financial capacity compared to CD&R, which raised a record 26 billion euros last year, was a disadvantage in the bidding process.

Price Action: SNY stock is down 0.87% at $54.45 during the premarket session at last check Monday.

Image by HJBC via Shutterstock

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