Sanofi’s Decision to Sell Opella to CD & R
Sanofi, the French pharmaceutical giant, has decided to sell its popular consumer health subsidiary Opella to the American investment fund CD & R for over 15 billion euros. This decision came after exclusive negotiations with CD & R, outbidding the French investment firm PAI Partners in terms of valuation.
Rationale Behind the Decision
Although PAI Partners had offered significant social commitments and was a French entity, Sanofi opted for CD & R due to the higher valuation. The choice of an American fund was seen as a move to provide international shareholders with independence from French authorities amidst a politically turbulent environment.
Future Plans and Implications
Sanofi plans to maintain a short-term French connection by retaining around 50% of Opella’s capital for a few years before gradually disengaging. Bpifrance is expected to join the investment at a later stage. The acquisition will undergo foreign investment scrutiny, given the strategic importance of the health sector for France’s sovereignty.
CD & R’s Acquisition of Opella
Upon completion, CD & R will gain control of Opella, a company with 11,000 employees across 150 countries, holding renowned brands such as Doliprane, Dulcolax, Lysopaïne, and Maalox. In 2023, Opella reported a revenue of 5.2 billion euros, making it a significant addition to CD & R’s portfolio.
Sanofi’s Strategic Shift
Sanofi’s decision to divest Opella aligns with its strategy to focus on developing innovative and profitable drugs, moving away from over-the-counter medications and dietary supplements. This move echoes similar actions taken by other pharmaceutical companies, such as GSK’s separation from its consumer health division.
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