FX.co ★ Sanofi Enters Exclusive Negotiations To Sell 50% Stake In Opella To CD&R

Sanofi (SNYNF) has announced that it is in exclusive negotiations with private equity firm CD&R to divest a 50% controlling interest in its consumer healthcare division, Opella. Opella's valuation is based on an enterprise worth of €16 billion. Despite the divestiture, Sanofi will retain a significant stake in Opella, facilitating its future growth and journey towards autonomy. Additionally, Bpifrance is anticipated to join as a minority stakeholder holding approximately 2%.

Sanofi intends to allocate the transaction proceeds in line with its current capital distribution objectives, which encompass shareholder returns. The completion of this proposed transaction hinges on the finalization of definitive agreements, the execution of necessary social processes, and customary regulatory approvals. The earliest expected timeline for the transaction's conclusion is the second quarter of 2025.

Opella, headquartered in France, boasts a workforce exceeding 11,000 individuals and extends its operations across 100 countries. It is bolstered by 13 strategic manufacturing sites and four dedicated science and innovation development centers. Opella, home to well-known brands like Allegra, Doliprane, and Dulcolax, ranks third globally in the over-the-counter and vitamins, minerals, and supplements (OTC & VMS) market, serving over 500 million consumers worldwide.

Excluding Opella, Sanofi projects that its business earnings per share for 2024 will grow by at least a low-single-digit percentage at constant exchange rates (CER). Under the previous guidance, which included Opella, Sanofi had expected its 2024 business earnings per share to range from stable to a low single-digit increase at CER, improved from a previously stable outlook. This forecast upgrade is underpinned by strong expected business performance in the third quarter.

Looking ahead to 2025, Sanofi anticipates a robust rebound in business earnings per share at CER under both its previous and revised scopes.