Sanofi Sells Controlling Stake in Opella

PARIS (Reuters) – Sanofi has reached an agreement to sell a controlling stake in its consumer health unit, Opella, to the U.S. private equity firm Clayton Dubilier & Rice (CD&R). This agreement comes after CD&R provided guarantees to the French government regarding job security and production in France.

Sanofi declined to provide comments on the sale, which is valued at approximately 15 billion euros ($16.29 billion). Opella reportedly generates annual revenues of 5.2 billion euros and employs around 11,000 people worldwide, as noted by French newspaper Le Figaro.

As France's largest pharmaceutical group, Sanofi’s negotiations with CD&R for a 50% controlling stake in Opella had sparked criticism among government opponents concerned about the potential loss of a strategic asset.

Both Les Echos and Le Figaro reported that the French public investment bank, Bpifrance, will acquire a 1% stake in Opella and secure a seat on the board.

Finance Minister Antoine Armand announced on social media that guarantees had been obtained for Opella to remain and expand in France, along with Bpifrance's involvement.

Amidst the ongoing Covid-19 pandemic, the French government has made commitments to enhance self-sufficiency in healthcare. Recently, labor unions have called for strike actions at Sanofi’s plants due to concerns that the sale to CD&R might lead to job losses.

Note: All currency conversions are approximated ($1 = 0.9204 euros).