US private equity firm Clayton Dubilier & Rice (CD&R) has reached agreement on the terms to acquire a controlling 51% stake in Sanofi’s consumer health division Opella, according to a report by Reuters citing sources within the French government.
The deal was finalised after CD&R provided assurances to France regarding the preservation of jobs and production within the country, following discussions involving Sanofi, CD&R, and the government.
Sanofi declined to comment on the deal, which is reportedly valued at around €15bn ($16.29bn), according to earlier reports by Reuters.
Opella generates annual revenues of €5.2bn and employs 11,000 people worldwide, as reported by French newspaper Le Figaro.
Last week, Sanofi, France’s largest pharmaceutical company, confirmed it was in negotiations with CD&R to sell a 50% controlling stake in Opella, drawing criticism from political opponents concerned about losing a key national asset.
French business dailies Les Echos and Le Figaro reported that French public investment bank Bpifrance would take a 1% stake in Opella and hold a seat on the company’s board, ensuring continued French involvement in the company’s operations.
