Sanofi has entered into "exclusive negotiations" with U.S.-based private equity company, Clayton, Dubilier & Rice (CD&R), to sell a 50% controlling stake in the Sanofi consumer health care business, Opella.
The deal has the blessing of the French government, who backed the sale on Sunday after obtaining commitments to keep jobs, production and management in France. The government also wanted the assurance that the sale wouldn't affect the supply of essential medicines, including pain reliever paracetamol, in France. According to Sanofi, French public investment bank Bpifrance is will become a minority shareholder with a stake of around 2%. Bpifrance will also get a seat on Opella's board.
Headquartered in France, Opella employs over 11,000 people, operates in 100 countries, and manages 13 manufacturing sites and four research and innovation centers. The company has a portfolio of 100 leading brands, including Allegra, Doliprane, Novanight, Icy Hot, and Dulcolax. According to Sanofi, Opella is the world's third-largest company in the OTC and vitamins, minerals and supplements market, serving more than half a billion consumers worldwide.
Sanofi's decision to spin off Opella — which already operates as a standalone business — aligns with biopharma's ongoing strategy to focus on innovative medicines and vaccines. The plan, which is part of what CEO Paul Hudson called a "new chapter" of Sanofi's multi-year 'Play to Win' strategy, was revealed last October.