Sanofi (SNY, Financial) announced the commencement of exclusive negotiations to sell a 50% stake in its consumer healthcare business, Opella, to the American private equity firm Clayton Dubilier & Rice. The French pharmaceutical giant is among several companies divesting consumer-related segments, with Opella valued at approximately 16 billion euros ($17 billion). This valuation is 14 times the projected core profit (EBITDA) for 2024. The proposed deal is subject to final agreements and regulatory approvals and is expected to conclude by the second quarter of 2025.
Despite recent criticisms from government opposition regarding the loss of a strategic asset, Sanofi reached an agreement with Paris by ensuring continued employment and production in France. French public investment bank Bpifrance is expected to become a minority shareholder, holding about 2% of the company. CEO Paul Hudson highlighted the choice of a partner with the best capabilities to ensure long-term success. Sanofi plans to remain involved in Opella for the foreseeable future.
Opella employs 11,000 people globally and markets popular brands such as Doliprane, Mucosolvan, Allegra, and Buscopan. Sanofi had previously considered splitting its consumer health division and plans to use the proceeds to invest in new immune and inflammation drug developments. Additionally, Sanofi has revised its earning per share (EPS) forecasts, expecting a low single-digit percentage growth, excluding Opella, for 2024 at constant exchange rates. Including Opella, the earnings growth is anticipated to shift from stable to a stable to low single-digit percentage increase.
