Clayton Dubilier & Rice (CD&R), a major U.S. private equity firm, is on the brink of securing an agreement to acquire the controlling stake in Sanofi's (SNY, Financial) consumer health business, Opella. This development follows CD&R's agreement with the French government on social commitments.
Sources indicate that CD&R has finalized commitments with the French government regarding local employment, investment, and production connected to Opella. Sanofi and CD&R are expected to announce the deal soon. As part of the transaction, the state-owned investment company Bpifrance will acquire a minority stake in Opella.
The French Finance Minister, Antoine Armand, confirmed that the government has secured guarantees for Opella's maintenance and development in France. Armand assured that the requirements related to employment, production, and essential medication investments in France will be met. He also confirmed the state's involvement as a shareholder through Bpifrance to ensure these commitments are upheld.
According to estimates, Opella's valuation stands at approximately €15 billion ($16.3 billion). Earlier this month, Sanofi confirmed negotiation talks with CD&R for selling a 50% controlling stake in the business. CD&R had outbid PAI Partners in the year-long bidding process.
In a surprising turn, after Sanofi's decision, a consortium led by PAI put forward an improved offer for Opella, promising additional commitments in employment and investment. Sanofi stated that all candidates had equal opportunities to submit their best bids by the deadline, and expressed surprise at the emergence of "revised offers" through media, which were beyond the decision-making timeframe and governance processes.
