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The famous Doliprane is about to change flag. This Friday, Sanofi announced that it was in exclusive negotiations with the American fund Clayton, Dubilier & Rice (CD&R) to sell a majority stake in its subsidiary Opella, which owns the essential paracetamol brand in France. The French pharmaceutical giant is ready to sell 50% of the capital of Opella as part of a colossal operation valued at 15 billion euros. This decision marks the end of several months of fierce bidding between CD&R and the French investment fund PAI Partners, which was excluded from the race.
A colossal challenge for Sanofi and CD&R
For months, Sanofi has been exploring options to strengthen its strategy and focus more on innovation in immunology. The sale of its consumer division, Opella, which generates a turnover of 5.2 billion euros, is part of this approach. By making this negotiation public, the group indicated that the transaction would allow Sanofi to offload this activity considered closer to the consumer sector than pure pharmaceuticals.
According to a Sanofi press release, the outcome of the discussions still depends on the approval of employee representative bodies and several competent authorities. In addition, CD&R is committed to respecting important conditions, in particular the preservation of employment in France and the maintenance of decision-making centers in France. A source close to the American fund told BFMTV that “production capacities will remain in France”, a statement intended to allay concerns linked to a potential relocation.
Why CD&R won the race
The amount put on the table by CD&R, 15.5 billion euros according to some reports, was a key element in Sanofi’s decision. This amount represents a valuation of Opella of 11 to 13 times its operating profit, which outperformed rival offers. CD&R, an investment fund based in New York, has thus obtained the confidence of the Sanofi board of directors to enter into exclusive discussions. Additionally, Sanofi will retain a significant stake in Opella, nearly 50%, allowing it to remain involved while obtaining funds for its future projects.
French Industry Minister Marc Ferracci welcomed this approach, stressing that CD&R presents “positive prospects for the overall development of Opella”. However, the government remains vigilant about maintaining the French industrial footprint, particularly for a product as essential as Doliprane.
Industrial guarantees under surveillance
Fears around the production and supply of paracetamol are strong, particularly after the tensions observed during the winter of 2022-2023. Government representatives, notably Antoine Armand, Minister of the Economy, recalled the importance of guaranteeing the health security of the French. To allay these concerns, CD&R reaffirmed its commitment to maintaining production capacities on French territory, ensuring that this acquisition was synonymous with development, both in France and internationally.
The American fund has already proven itself in the health sector, and this partnership with Sanofi seems to offer it new opportunities to accelerate Opella’s growth, particularly in the United States, which represents 24% of its turnover. . The American market, in slight decline in 2023, needs a new lease of life, and CD&R presents itself as a strategic ally to achieve this.
A strategic turning point for Sanofi
This partial sale allows Sanofi to recover a significant part of its investment, estimated at more than 7 billion euros, which it could redistribute to its shareholders. The CEO of Sanofi, Paul Hudson, also underlined that this operation would allow his group to refocus on its priorities: immunology and innovative treatments, while providing Opella with the financial means necessary to continue its growth, particularly in through targeted acquisitions.
The future of Opella remains conditional on the conclusion of this sale and the approvals of the competent authorities. However, for Sanofi, this operation represents a major strategic step in its transformation.
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