Investing.com -- Sanofi (EPA:SASY)(NASDAQ:SNY) has entered into exclusive negotiations with private equity firm Clayton, Dubilier & Rice to sell a controlling stake in its consumer healthcare unit, Opella, the company said in a statement.
This move marks a shift for Sanofi, which aims to concentrate on its core focus of developing innovative medicines and vaccines.
Under the proposed deal, CD&R would acquire a 50% controlling interest in Opella, while Sanofi would retain a substantial stake, positioning itself as a key player in the company’s future trajectory.
Opella, based in France, is a global leader in the consumer healthcare market and its portfolio includes well-known brands such as Allegra, Doliprane, and Dulcolax, catering to over 500 million consumers worldwide.
With these assets, Opella ranks as the third-largest company in the over-the-counter and vitamins, minerals, and supplements sectors.
The valuation for Opella is based on an enterprise value of approximately €16 billion, equating to around 14 times its projected EBITDA for 2024.
CD&R's offer is binding and fully financed. By staying involved with Opella, Sanofi expects to benefit from the continued value creation of the business.
The deal, subject to final agreements and regulatory approvals, is expected to close no earlier than the second quarter of 2025.
Sanofi’s decision to enter this partnership aligns with its broader objective of becoming a more streamlined biopharma company, concentrating on addressing significant health issues such as RSV, COPD, and multiple sclerosis.
This transaction would also enable Opella to strengthen its position as a standalone consumer healthcare company, while CD&R brings expertise in fostering growth and innovation in consumer-focused companies.
The deal also includes participation from Bpifrance, a French investment bank, which is expected to acquire a minority stake of around 2%.
The transaction will lead to Opella being classified as discontinued operations in its financial statements, Sanofi said in a statement.
Starting from the fourth quarter of 2024, the profit and loss from Opella will be reported separately, and Sanofi’s earnings per share guidance will be adjusted accordingly.
The financial impact of Opella’s reclassification will also be reflected in Sanofi’s third-quarter earnings results for 2024.