Sanofi Nears Sale of Consumer Health Unit to CD&R

By Dominique Patton

(Reuters) – Sanofi is closing in on a deal to sell its consumer health unit for about 15 billion euros ($16.4 billion) to U.S. private equity firm Clayton Dubilier & Rice (CD&R), according to a source familiar with the matter.

The French pharmaceutical company plans to spin off or sell its consumer unit to enhance funding for new drug development at its core business.

The development was first reported by Bloomberg News earlier in the day.

In September, it was reported that Sanofi (NASDAQ:SNY) had received two separate bids from CD&R and rival PAI Partners for the Opella unit.

CD&R has maintained interest, distancing itself from competition with PAI Partners for the unit, the Thursday report noted.

The deal could be announced in the coming days, according to reports.

Sanofi and CD&R did not immediately respond to requests for comment from Reuters.

In October 2023, Sanofi announced it was reviewing potential separation scenarios for its consumer healthcare business, with a transaction possible in the fourth quarter at the earliest.

Note: ($1 = 0.9145 euros)