Sanofi sells Opella Consumer Health Division in US$17B Deal with CD&R

FRANCE—French pharmaceutical giant Sanofi has taken a major step in its long-term strategy by advancing the sale of its consumer health division, Opella, in a deal valued at approximately US$17 billion.

In a recent development, Sanofi signed a share purchase agreement with the US-based private equity firm Clayton Dubilier & Rice (CD&R).

Under the agreement, Sanofi will transfer a 50% controlling stake in Opella to CD&R while continuing to retain a significant share of the business.

Additionally, French public investment bank Bpifrance is expected to participate by acquiring a 2% minority stake in the consumer health unit.

This move is seen as crucial to the French government’s efforts to ensure that jobs and production remain in the country, especially given Opella’s substantial role in the national economy.

The agreement, which marks the first public update since Sanofi began exclusive discussions with CD&R in October 2024, is anticipated to be finalized by the second quarter of 2025.

The deal’s completion will still be subject to the usual regulatory approvals.

When the discussions started, Sanofi valued Opella at around €16 billion (US$17 billion), which is roughly 14 times the forecasted core earnings (EBITDA) for 2024.

This valuation reflects the division’s robust performance and market potential.

Opella is a well-known entity in the consumer health market and currently employs more than 11,000 people worldwide.

One of its most famous products is Doliprane, a paracetamol-based painkiller that has become so ubiquitous in France that the brand name is often used interchangeably with paracetamol in general conversation.

In addition to Doliprane, the division also manufactures other popular products such as Allegra, an allergy treatment, and Buscopan, which relieves irritable bowel syndrome (IBS) symptoms.

In 2023 alone, sales from Opella reached approximately €5.6 billion (U $5.8 billion), accounting for about 11% of Sanofi’s total business.

Moreover, Sanofi claims that Opella ranks as the third-largest player globally in the over-the-counter market for vitamins, minerals, and supplements.

This divestment is not only a financial manoeuvre but also part of a broader trend within Sanofi, which is aiming to become a pure-play biopharma company by focusing more on innovative medicines and vaccines.

Similar strategic shifts have been observed in the industry; for instance, both Johnson & Johnson and GSK restructured their consumer healthcare operations in 2022, creating independent companies, Kenvue and Haleon, respectively.

Furthermore, Sanofi has been actively restructuring its investments.Earlier this month, the company repurchased a US$3.1 billion stake from cosmetics giant L’Oréal, significantly reducing the latter’s ownership.

In a separate transaction, Sanofi agreed to purchase an additional US$2.08 billion in shares from other investors, further consolidating its control over its portfolio.

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