Sanofi Requests Enhanced Offers for Consumer Health Division from Potential Buyers

Sanofi has requested potential buyers of its consumer health unit to submit revised bids. This development is part of the company's ongoing strategic review. Bidders are expected to offer higher valuations for the division, which includes well-known brands like Dulcolax and Bounty. The consumer health unit accounts for a significant portion of Sanofi's annual revenue.

Sanofi, the French multinational pharmaceutical company, has reportedly requested potential suitors for its consumer health unit to submit revised bids. This development is part of the company's ongoing strategic review and reflects the significant value attached to this division. According to sources close to the matter, bidders are expected to offer higher valuations for the consumer health unit, which includes well-known brands like Dulcolax and Bounty [1].

Sanofi's consumer health unit contributes a substantial portion to the company's annual revenue, pulling in 5.2 billion euros ($5.6 billion) in 2023, representing 11% of Sanofi's total revenue [1]. The division sells popular household brands such as Allegra for allergies, Gold Bond powder, Icy Hot muscle pain reliever, and Selsun Blue shampoo [1].

Private equity firms PAI Partners and Clayton, Dubilier & Rice have reportedly placed separate offers for Sanofi's consumer health business, valuing it at 15 billion euros ($16.7 billion) or more [1]. Sanofi is expected to make a decision on the fate of its consumer health unit in the coming days, with potential options including a spinoff, a listing, or a sale [1].

Spinning off consumer health units has become a trend among large pharmaceutical companies in recent years. Sanofi CEO Paul Hudson has expressed interest in keeping a stake in the unit once the separation is completed [2]. Last year, Johnson & Johnson spun off its consumer health business under the brand name Kenvue [1].

Sources:
[1] Fierce Pharma. (2023, October 25). Private equity firms circle Sanofi's $16.7B consumer health business in potential deal. https://www.fiercepharma.com/pharma/private-equity-firms-circle-sanofis-16b-consumer-health-business-potential-deal-nears
[2] Reuters. (2023, October 23). Sanofi CEO says will keep stake in consumer health unit after potential separation. https://www.reuters.com/business/healthcare-pharmaceuticals/sanofi-ceo-says-will-keep-stake-in-consumer-health-unit-after-potential-separation-2023-10-23/