Sanofi sells its consumer health division, with Anhui Capital and PAI Partners among the bidders, with a valuation of up to 15 billion euros

According to the Zhītōng Finance and Economics APP, informed sources revealed that private equity firms Advent International and PAI Partners have submitted first-round bids for the consumer health division of French pharmaceutical company Sanofi (SNY.US). Clayton Dubilier & Rice has also made a preliminary acquisition offer for Sanofi's business, with some acquirers suggesting a valuation of up to 15 billion euros for the division. The business primarily sells over-the-counter products such as Phytoxil cough syrup and Icy Hot pain relief gel. A consortium composed of CVC Capital Partners Plc, Bain Capital, and Cinven did not submit bids before the deadline. Deliberations are still ongoing, and some bidders may choose to join forces later on. Informed sources added that more bidders may emerge. A representative of Sanofi stated that the company is reviewing potential separation options for the consumer health business, with the earliest completion of the transaction expected in the fourth quarter of 2024, and added that preparations are proceeding as planned. The representative said, "We are keeping all options open, including listing and selling, to maximize value for all stakeholders." In October last year, Sanofi announced plans to review all options for splitting the consumer health division, aiming to create better long-term value from cutting-edge therapies (especially in immunology or vaccines). Sources indicated that the pharmaceutical company is likely to retain a significant minority stake in the business after the sale, reducing the amount of capital bidders would need to invest. The company is also simultaneously advancing preparations for a potential IPO of the business. Sanofi CEO Paul Hudson stated earlier this month in an interview that the company is in negotiations with all interested parties, including private equity, and is also considering capital market options. "There is a lot of interest in this." PAI has always hoped to be the sole French bidder, a position that would put it in a favorable position to acquire the business. Jose Gonzalo, Executive Director of the French state investment company Bpifrance SACA, told reporters on July 4 that the company is also considering a potential investment in a Sanofi subsidiary and may collaborate with the winning bidder. The potential sale of the over-the-counter business could become one of the largest deals in Europe this year. Earlier this month, the left-wing coalition unexpectedly won the early parliamentary elections in France, preventing Marine Le Pen's far-right alliance from securing a majority, which also propelled the progress of the transaction. President Macron appointed a caretaker government on Tuesday, and negotiations for a new prime minister are still ongoing