Sanofi has received two separate takeover bids from private equity firms PAI Partners and Clayton Dubilier & Rice for its consumer health unit, potentially valuing the business at around €15bn ($16.74bn) or more, according to a report by Bloomberg News.
The report cites unnamed sources as revealing that the French pharmaceutical giant is expected to make a decision on the unit in the coming days after reviewing the offers. If the bids do not meet Sanofi’s expectations, the company may choose to spin off the business instead, according to the sources.
Both private equity firms have declined to comment on the matter.
PAI is reportedly seeking support from British Columbia Investment Management Corp and has been in discussions to involve the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund, GIC Pte, in the consortium.
In October 2023, Sanofi announced that it was considering several options to separate its consumer healthcare division, targeting a transaction as early as the fourth quarter of 2024. No final decision has been made yet and the company will choose the best path forward in the coming months, according to a Sanofi spokesperson.
Other pharmaceutical giants have already cashed in on their consumer units with Johnson & Johnson spinning off its Kenvue operation in May 2023, while GSK and Pfizer (PFE.N) separated their consumer businesses in 2022.
