Sanofi has entered exclusive talks to sell a 50% stake in its consumer healthcare unit, Opella, which produces Doliprane, to US private equity firm Clayton Dubilier & Rice. Bpifrance will acquire a minor stake of 2%, with government backing to safeguard jobs and investments in France. The deal, valued at approximately 16 billion euros, aims for completion by mid-2025, while Sanofi has raised its 2024 profit forecast amid a strong third-quarter performance.
Sanofi Enters Exclusive Talks to Sell Opella Stake
In a significant development in the Doliprane saga, Sanofi has revealed that it is engaged in exclusive negotiations to sell a 50% controlling interest in its consumer healthcare division, Opella, the producer of Doliprane, to the US-based private equity firm Clayton Dubilier & Rice (CD&R). French public investment bank Bpifrance will also join the deal, taking a minority stake of about 2%, as part of an agreement with the French government aimed at securing the future of Opella.
This announcement coincides with an upward revision of Sanofi’s profit projections for 2024, highlighting the growing optimism surrounding the company’s outlook.
This morning, ministers Antoine Armand (Economy) and Marc Ferracci (Industry) confirmed a tripartite agreement among Sanofi, CD&R, and the government, which aims to ensure job security, production, and investment commitments at Opella. Notably, the agreement includes provisions for job protection in France, stipulating a penalty of €100,000 for each position eliminated due to forced economic layoffs. Furthermore, a target of €70 million in investments over the next five years has been set, with a financial penalty in place for any deviations from this objective.
Previously, speculation heightened with a Bloomberg report revealing that CD&R and PAI Partners were the leading candidates for the acquisition of Opella. The situation intensified in recent weeks as Sanofi announced talks exclusively with CD&R, amid public concerns regarding industrial sovereignty associated with Doliprane.
Reports surfaced late last week indicating that Sanofi’s board had received a superior offer from PAI Partners for Opella; however, this bid ultimately did not materialize.
The valuation of Opella stands at approximately €16 billion, reflecting an enterprise value of nearly 14 times its estimated EBITDA for 2024. The anticipated transaction could take place by the second quarter of 2025, pending the finalization of agreements and requisite regulatory approvals.
Sanofi has confirmed that the proceeds from this deal will align with its current capital allocation strategy, including a focus on returning value to shareholders.
Positive Outlook for Sanofi
Alongside these developments, Sanofi has upgraded its earnings per share (EPS) guidance for 2024, driven by an expected robust performance in the third quarter. Details regarding this updated guidance are set to be disclosed in Sanofi’s third-quarter results report, scheduled for October 25.
When accounting for Opella, Sanofi forecasts growth between stable levels and low single digits at constant exchange rates. In contrast, excluding Opella, the preliminary business EPS for 2023 was recorded at €7.25, with an anticipated growth of at least low single digits at constant exchange rates for 2024.
Looking ahead to 2025, Sanofi projects a strong recovery in business EPS at constant exchange rates across both its previous and revised scopes.