Sanofi will sell a 50% controlling stake in consumer healthcare unit Opella to private equity firm CD&R, with the French government taking a stake as well to ensure the business remains in the county.
Sanofi has officially struck a deal to sell a 50% controlling stake in consumer healthcare unit Opella to a private equity firm, valuing the new standalone company at €16 billion ($17.3 billion).
American private equity firm Clayton Dubilier & Rice (CD&R) will take the majority stake, but the French government is taking a 2% share via public investment bank Bpifrance to assuage concerns over the iconic company taking jobs and production out of the country. Sanofi will remain a significant shareholder as well, according to the Monday announcement.
The deal puts Opella on the path to becoming a standalone company, leaving Sanofi to focus on its innovative medicines and vaccines. The company will remain headquartered in France, employing 11,000 people with operations in 100 countries and 13 manufacturing sites. Opella’s brands include seasonal allergy medication Allegra, topical pain relief line IcyHot and constipation drug DulcoLax.
Sanofi will receive a cash payment from the transaction sometime around the second quarter of 2025. Proceeds will go towards existing capital-allocation plans including shareholder returns and external growth opportunities.
Sanofi revealed talks with CD&R earlier in October, with the move to sell off the consumer healthcare unit first revealed a year earlier as part of the French pharma’s October 2023 “Play to Win Strategy.”
After announcing the deal, Sanofi faced criticism from French officials, who worried about the loss of a strategic asset, Reuters reported last week. Labor unions called for a strike to protest the deal. Sanofi then received a rival offer from private equity firm, PAI Partners.
Ultimately, Sanofi stuck with CD&R, while emphasizing in today’s release that Opella will be a French-headquartered, standalone business. Sanofi also noted that CD&R has a history of investing in Europe, including in France’s Rexel, Spie, BUT/Conforama and Socotec.
“We share the love and emotional attachment to Opella’s brands, hence our decision to remain vested in its future,” said Sanofi CEO Paul Hudson in a statement. “We will support Opella on its path to become an independent company, grounded in talented people, a deep consumer expertise and a truly global presence with deep roots in France.”
Sanofi’s move follows the lead of many of its Big Pharma peers to sell off their consumer healthcare units. Last year, J&J split off Kenvue, creating a standalone company to house iconic brands like Tylenol and Benadryl. Novartis did the same with its generics and biosimilars unit Sandoz as well.
