French pharmaceutical giant Sanofi S.A. (EPA: SAN; NASDAQ: SNY) has reportedly received multiple binding offers for its consumer health care (CHC) division, from private equity firms Clayton Dubilier & Rice and PAI Partners, according to sources cited by Bloomberg. The potential deal could value the business at up to EUR 15 billion (USD 16.7 billion).
Sources close to the matter have indicated that PAI, the French fund, is in talks with several potential partners to form a consortium for the acquisition of the over-the-counter (OTC) drug business. British Columbia Investment Management Corp., Abu Dhabi Investment Authority, and Singapore’s sovereign wealth fund GIC Pte are said to be among those approached.
Sanofi is also said to be considering spinning off the CHC unit as an independent company if the bidding does not meet its target price. The current negotiation process is anticipated to extend into at least the fourth quarter of 2024. In the 12 months ending 2023, the CHC business generated revenues of EUR 5.18 billion (USD 5.72 billion), marking a year-on-year increase of 6.3% in constant currency. – Fineline.com
