Private equity giant Clayton Dubilier & Rice (CD&R) is set to acquire Sanofi's (SNY, Financial) consumer health division, Opella, for approximately 15 billion euros (164 billion dollars). This acquisition is poised to be one of Europe's largest deals of the year. Sources suggest that CD&R surpassed PAI Partners in the bidding process, with an announcement expected soon. Sanofi may retain a minority stake in Opella, which offers over-the-counter products like Cenovis vitamins, DulcoLax constipation relief, and Icy Hot pain gel. Despite nearing completion, the deal could face delays or be called off, as no official comments have been made by Sanofi, CD&R, or PAI Partners.
This transaction is significant for Sanofi as it marks the culmination of efforts over the past year to separate its consumer health business. The company aims to focus its resources on cutting-edge therapies, particularly in immunology and vaccines, to generate long-term value. The deal signals a revival in the European healthcare transaction market.
CD&R has been active in the French market and raised a record 26 billion dollars in acquisition funds last year. In July, CD&R partnered with Permira to privatize cybersecurity company Exclusive Networks SA and is also an investor in Mobilux, one of France's largest home appliance retailers. Since its inception in 1978, CD&R has focused on sectors such as business services, consumer, financial services, healthcare, and technology across North America and Europe. In healthcare, it has invested in companies like Sharp, which focuses on contract packaging and clinical manufacturing.
The healthcare investment team at CD&R has strengthened with the appointment of Adam Karol from Silver Lake as a partner and industry veteran Leslie Starr as an operating advisor focusing on the consumer business.
