Sanofi Sells Stake in Consumer Health Business

By Dominique Patton
PARIS (Reuters) – French drugmaker Sanofi has entered exclusive discussions to sell a 50% controlling stake in its consumer health business, Opella, to Clayton Dubilier & Rice (CD&R), a U.S. private equity firm.

Stake and Shareholding
French public investment bank Bpifrance will reportedly acquire a 2% minority stake, giving the French state a position on Opella's board.

Valuation and Sale Context
Opella has been valued at approximately 16 billion euros ($17 billion), equating to 14 times estimated core earnings (EBITDA) for 2024. Reports of the impending sale have drawn criticism from government opponents regarding the potential loss of a strategic asset. This led to strikes by workers and a renewed offer from rival PAI Partners.
French government insiders confirmed that Sanofi reached an agreement after assuring Paris about maintaining jobs and production in France.

Transaction Details
The deal, still pending definitive agreements and approvals, is anticipated to finalize by the second quarter of 2025. Sanofi also forecasted an upgrade of its earnings per share (EPS) guidance, predicting at least low-single digit growth for 2024, excluding Opella.

Share Movement
Sanofi's shares fell 0.5% early in the trading session.
CEO Paul Hudson commented that they selected CD&R for their capabilities to ensure Opella's long-term success: “We expect to be involved and in partnership for a long time.”

Opella Overview
Opella operates with 11,000 employees worldwide and markets well-known French pain reliever Doliprane, alongside other products like Mucosolvan, Allegra, and Buscopan.
Sanofi plans to allocate the sale's proceeds to enhance resources for developing novel immunology and inflammation drugs.

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