PARIS – On Monday, Sanofi (NASDAQ: SNY), the French drugmaker, said it had entered exclusive talks to sell a 50% controlling stake in its consumer health business Opella to U.S. private equity firm Clayton Dubilier & Rice (CD&R).
French public investment bank Bpifrance is expected to become a minority shareholder, taking a stake of around 2%, said Sanofi in a statement, and giving the state a seat on Opella’s board.
Sanofi, which is joining a growing number of drugmakers shedding consumer-related businesses, said Opella had been valued at around 16 billion euros ($17 billion), or 14 times estimated core earnings (EBITDA) for 2024.
Reports that an Opella sale was close 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 (NASDAQ: SNY) had agreed on the terms of the deal after providing Paris with guarantees on maintaining jobs and production in France.
The proposed transaction, still subject to definitive agreements, social processes, and statutory approvals, is expected to close in the second quarter of 2025 at the earliest, said Sanofi.
The company 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.
Sanofi (NASDAQ: SNY) shares were down 0.75% in pre-market trade.
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.”
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.
Sanofi (NASDAQ: SNY), which said a year ago 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.
($1 = 0.9206 euros)
(Source: ReutersReuters)
