Sanofi Sells 50% Stake in Opella to CD&R
The US private equity company Clayton, Dubilier & Rice (CD&R) on Monday announced that it will acquire 50% stake in Opella, the consumer health business of Sanofi, a French multinational pharmaceutical and healthcare company headquartered in Paris, which would be valued at $17.3 billion in the deal.
The proposed transaction is subject to finalisation of definitive agreements, completion of the appropriate social processes, and subject to customary statutory approvals. Anticipated closing of the transaction would be in Q2 of 2025 at the earliest.
The offer from CD&R is binding and fully financed. By remaining a significant shareholder in Opella, Sanofi would retain part of the future value creation of the company.
This new step in Opella’s journey paves the way for the creation of a new, standalone leader in consumer healthcare, while supporting Sanofi’s strategy and increased focus on innovative medicines and vaccines, CD&R said.
Sanofi would remain a significant shareholder backing Opella in its future growth and path to independence. Together, CD&R and Sanofi will support Opella’s growth strategy as a pure-play, global, and fast-moving consumer healthcare company. French sovereign wealth fund Bpifrance is expected to participate as minority shareholder with a 2% stake.
No Job Cuts
The involvement of Bpifrance in the deal was to allay fears that the takeover by the US firm might result in the locals losing their jobs. The Economy Minister of France Antoine Armand, said that the government had obtained guarantees on the maintenance and development of Opella in the country.
“Strict compliance with these commitments will be ensured by our presence, through BpiFrance on the Opella board of directors and by unprecedented financial penalties in the event of failure,” Armand said in the post on the social media platform X.
Opella operates in 100 countries with 13 best-in-class and strategic manufacturing sites and four science and innovation development centres. The deal would provide Sanofi more resources to fund its biopharmaceutical drugs business.
With a portfolio of iconic brands, such as Allegra, Doliprane, and Dulcolax, Opella is already the third-largest business worldwide in the over-the-counter and vitamins, minerals & supplements market (OTC & VMS), serving more than half a billion consumers worldwide.
CD&R has a proven track record of partnering with corporates and management teams to support businesses’ growth and development, leveraging the firm’s global reach, deep industry expertise and broad network of operating partners and advisors.
It has a long history of investment in Europe and the firm’s experience building French national champions and supporting French jobs goes back more than twenty years and includes successful partnerships with, and investments in, Rexel, Spie, BUT/Conforama and Socotec.
Though Sanofi was discussing its plans to partly divest its stake in Opella for several months, it formally announced the negotiations with CD&R only a fortnight ago.
Sanofi CEO Paul Hudson on Monday said that they will support Opella on its path to become an independent company. 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, he added.
