A number of private equity firms including Bain Capital and Cinven are considering making a bid to acquire Sanofi’s consumer health business unit for around $20bn, according to a report by Bloomberg.
The report cites unnamed sources in revealing that Advent International is also discussing a combined bid with other investors including the Abu Dhabi Investment Authority, while French state investment firm Bpifrance is also said to be exploring a possible investment.
Sanofi announced last October its intention to spin off its consumer health business into a separate company by the end of this year to focus on its prescription drugs segment, and the company has been streamlining the unit’s product range in preparation for a sale.
The consumer health unit, which owns brands such as allergy therapies Allegra and Xyzal, irritable bowel syndrome treatment Buscopan, painkiller Doliprane, and Pharmaton dietary supplements, has been operating as a standalone business since 2020. Last year, it generated revenues of €5.2bn ($5.6bn).
In Sanofi’s first-quarter update, CFO Francois Roger mentioned that the company is considering a spin-off via an initial public offering (IPO), potentially partnering with private equity. He noted that proceeds from the sale would be used to drive both organic and inorganic growth at Sanofi, including possible pipeline-boosting acquisitions in the €2bn to €5bn range.
Bloomberg reports that Sanofi CEO Paul Hudson has stated that the company is in talks with multiple interested parties and has a capital markets option available, suggesting significant interest in the business.
