Clayton Dubilier & Rice (CD&R) is nearing a deal to acquire control of Sanofi’s consumer health unit. The CD&R and Sanofi deal happened after the American buyout firm signed social commitments with the French government, as per people familiar with the matter. Sanofi on Sunday reached an agreement on terms to make a sale of controlling stake in its consumer health unit Opella to U.S. private equity firm CD&R.
The breakthrough came after the investment group provided France with guarantees on maintaining jobs and production in the country.
Sanofi and CD&R agreement
CD&R agreed to pledges around local jobs, investments and production linked to the consumer health unit Opella with the French government late Sunday, as per resources. Sanofi and the CD&R are set to announce exclusivity as early as Monday, they said.
State-owned investment firm Bpifrance is set to take a small stake in the OTC unit as part of the deal, the people said. Representatives for Sanofi and CD&R declined to comment.
Sanofi stake sale to CD&R
French Finance Minister Antoine Armand confirmed that the government had obtained guarantees for the maintenance and development of Opella in the country.
France’s requirements on employment, production and investment for essential medicines in the country “will be respected,” Armand said on X.
He also confirmed that the state, via French public investment bank Bpifrance, will be a shareholder to ensure this. Bpifrance would take a 1% stake in Opella and hold a seat on the board.
The finance ministry said it will hold a press conference Monday morning in Paris to discuss the guarantees obtained by the government regarding Sanofi’s planned sale of the controlling stake in the business to CD&R.
Sanofi Opella sale
The sale is estimated at around 15 billion euros ($16.29 billion) as per report. Opella generates annual revenues of 5.2 billion euros and employs 11,000 people globally, French newspaper Le Figaro said. Sanofi confirmed earlier this month it’s in talks to sell a 50% controlling stake in the business to CD&R, which beat out PAI Partners in the year-long bidding process. PAI representatives declined to comment.
PAI Partners offer
After Sanofi’s decision, the PAI-led consortium unexpectedly submitted an improved offer for Opella with additional pledges around jobs and investments.
That prompted a statement from Sanofi. It stated that all candidates had the same opportunity to submit their best offers by the deadline. The French company said it’s “surprising that a ‘revised offer’” was made public through the media, “outside the timeframe and the governance process that framed the decision.”
Strike at Sanofi
Last week, the labour unions called for strike action at Sanofi’s plants in France. The strike was over fear a sale to CD&R could result in job losses.
