(Bloomberg) — Sanofi entered exclusive negotiations to sell a controlling stake in its consumer health unit to Clayton Dubilier & Rice after the American buyout firm signed social commitments with the French government.
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The exclusive talks would see Sanofi transfer a 50% controlling stake in its Opella business to the US buyout firm, according to a statement Monday, giving it an enterprise value of about €16 billion ($17.4 billion). State-owned investment firm Bpifrance is expected to take a 2% stake in the OTC unit.
The renewed negotiations come after CD&R agreed to pledges around local jobs, investments and production linked to Opella with the French government, Bloomberg reported earlier.
Sanofi and the buyout firm had encountered a backlash in France when they earlier announced exclusive negotiations on a sale of the business, with the US firm prevailing over French rival PAI.
The deal is expected to close in the second quarter of next year at the earliest. Sanofi also said it will upgrade its 2024 earnings guidance.
–With assistance from Swetha Gopinath and Francois de Beaupuy.
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