(Bloomberg) -- Clayton Dubilier & Rice is nearing a deal to acquire control of Sanofi’s consumer health unit after the American buyout firm signed social commitments with the French government, according to people familiar with the matter.
CD&R agreed to pledges around local jobs, investments and production linked to the consumer health unit Opella with the French government late Sunday, the people said, asking not to be identified because the information is private. Sanofi and the US buyout firm are set to announce exclusivity as early as Monday, they said.
State-owned investment firm Bpifrance is set to take a small stake in the OTC unit as part of the deal, the people said. Representatives for Sanofi and CD&R declined to comment.
Following Bloomberg’s report, French Finance Minister Antoine Armand confirmed the government had obtained guarantees for the maintenance and development of Opella in the country.
France’s requirements on employment, production and investment for essential medicines in the country “will be respected,” Armand said on X. He also confirmed that the state, via Bpifrance, will be a shareholder to ensure this.
The finance ministry said it will hold a press conference Monday morning in Paris to discuss the guarantees obtained by the government regarding Sanofi’s planned sale of the controlling stake in the business to CD&R.
The consumer health unit is valued at around €15 billion ($16.3 billion), Bloomberg News has reported. Sanofi confirmed earlier this month it’s in talks to sell a 50% controlling stake in the business to CD&R, which beat out PAI Partners in the year-long bidding process. PAI representatives declined to comment.
After Sanofi’s decision, the PAI-led consortium unexpectedly submitted an improved offer for Opella with additional pledges around jobs and investments.
That prompted a statement from Sanofi saying that all candidates had the same opportunity to submit their best offers by the deadline. The French company said it’s “surprising that a ‘revised offer’” was made public through the media, “outside the timeframe and the governance process that framed the decision.”
--With assistance from Swetha Gopinath and Francois de Beaupuy.
(Updates with comments from finance minister starting from fourth paragraph.)
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