Sanofi has entered exclusive talks to divest a 50% controlling stake in its consumer health business Opella to US-based private equity firm Clayton Dubilier & Rice (CD&R) for about €16bn.
CD&R valued Opella at around €16bn, which is nearly 14 times the estimated EBITDA for 2024.
The French drugmaker said it would continue as a significant shareholder of Opella.
Also, it will partner with CD&R to support Opella’s growth strategy as a pure-play, and fast-moving global consumer healthcare company.
Bpifrance, a public sector investment bank in France, is expected to participate in the transaction to become a minority shareholder with a 2% stake.
The proposed transaction is expected to close before Q2 2025, subject to finalising definitive agreements, completion of social processes, and receipt of customary regulatory approvals.
Sanofi CEO Paul Hudson said: “We will support Opella on its path to become an independent company, grounded in talented people, a deep consumer expertise and a truly global presence with deep roots in France.
“Our chosen partner CD&R has demonstrated unique capabilities in the consumer space, with deep values of respect for employees, customers, communities in which they operate, and the environment.
“We also welcome Bpifrance as a supporter of Opella’s development journey. At the same time, Sanofi can focus even more in bringing innovative solutions to patients suffering from debilitating or life-threatening diseases or viruses such as RSV, COPD, or multiple sclerosis.”
Opella operates in 100 countries with more than 11,000 employees working at 13 strategic manufacturing sites and four science and innovation development centres.
The company offers a portfolio of brands, including Allegra, Doliprane, and Dulcolax, in the over-the-counter (OTC) and vitamins, minerals and supplements (OTC & VMS) market.
The proposed transaction would create a new, individual consumer healthcare company, and support its strategy and enhanced focus on advanced medicines and vaccines, said Sanofi.
Opella president and CEO Julie Van Ongevalle said: “Partnering with CD&R will allow Opella to unlock its full development potential, to further drive value creation and deploy the exceptional talent of our teams to become a leading company in the fast-moving consumer healthcare space.”
CD&R European healthcare partner and head Eric Rouzier said: “We see significant opportunities to enhance Opella’s market leadership by leveraging our deep industry expertise, a broad network of operating talents, and capital resources to position the company for accelerated growth.
“We look forward to supporting both its French operations, including Opella’s critical manufacturing footprint and advanced R&D capabilities, and further developing its global platform to better serve employees, consumers, and patients.”
