Sanofi (SAN.FR) sells its consumer health division, with bids from Anchorage Capital and PAI Partners, potentially worth up to €15bn
Sources close to the process said Advent International, a private equity company, and PAI Partners have submitted the first bids for Sanofi’s consumer health business.
Clayton Dubilier & Rice has also made a preliminary offer for the business, with some bidders suggesting a valuation of up to €15bn for the unit, which sells over-the-counter products such as Phytolice cough syrup and Icy Hot pain relief gel.
CVC Capital Partners and a consortium of Bain Capital and Cinven have not submitted bids by the deadline.
Due diligence is ongoing and some bidders may choose to partner up later, insiders added, with more bidders likely to emerge.
“We are reviewing potential separation options for our consumer health business, with a view to completing the transaction by the end of 2024 at the earliest, and are on track with our preparations,” a spokesperson for Sanofi said.
The spokesperson added: “We retain all options, including a public listing and a sale, to maximise value for all stakeholders.”
Sanofi announced in October last year that it would review all options for splitting off its consumer health business, with a view to creating better long-term value from cutting-edge treatments, particularly in immunology or vaccines. Insiders said the company was likely to retain a large minority stake in the business after a sale, reducing the amount of money bidders would need to invest.
The company is also preparing for a potential listing of the business.
Paul Hudson, chief executive of Sanofi, said earlier this month that the company was in talks with all interested parties, including Advent and private equity, and that it was also considering a capital markets listing. “There’s a lot of interest in this.”
PAI has been keen to be the sole French bidder, positioning itself to win the business. Jose Gonzalo, executive director of the French state investment company Bpifrance SACA, said on July 4 that the company was also considering potential investments in Sanofi subsidiaries and could work with a bidder.
A potential sale of the business could become one of the biggest deals of the year in Europe. The process has been accelerated by the early parliamentary election in France earlier this month, which saw the left-wing coalition win an unexpected victory, denying the far-right coalition of Marine Le Pen a majority in parliament, and the appointment of a caretaker government by President Macron on Tuesday.