Interest in Sanofi’s Consumer Health Division Grows Among Leading Buyout Firms
Leading Buyout Firms Show Interest in Sanofi’s Consumer Health Division
Advent International and Blackstone Group Inc. are among the major buyout firms expressing interest in acquiring Sanofi’s consumer health division, according to a report from Bloomberg on Tuesday. The division, listed under Nasdaq, has attracted attention from several large firms, with Sanofi’s shares experiencing a 2% surge on Tuesday.
Strategic Plans for Sanofi’s Consumer Health Division
In October, the French pharmaceutical giant announced its intention to separate the division, which primarily deals in over-the-counter products, including Phytoxil cough syrups and Icy Hot pain relief gels. The division’s potential sale has generated interest from other prominent firms such as Bain Capital, CVC Capital Partners, EQT AB, and KKR & Co.
Valuation and Potential Sale of Sanofi’s Consumer Health Division
Bloomberg sources suggest that the division could command a valuation of up to $20 billion in any prospective deal. Sanofi, keen on making a profitable sale, has indicated its willingness to consider a sale, possibly retaining a stake in the business. However, these discussions are still in the early stages, with no guarantee of formal proposals from the private equity firms.
The Road Ahead for Sanofi
If Sanofi can achieve its desired valuation for the unit, Bloomberg reports that the drugmaker has communicated its openness to a sale. However, the company may retain a stake in the business as part of any future agreement. Currently, there are no formal proposals from private equity firms, and the potential sale is still in the early stages.
