(Oct 11): Sanofi SA is in talks to sell a 50% controlling stake in its consumer health unit to Clayton Dubilier & Rice (CD&R), in what is set to be one of the biggest deals this year.

The announcement confirms a report from Bloomberg News that Sanofi is nearing an agreement with CD&R. Financial terms were not disclosed, but people familiar with the matter said earlier that the deal would value the unit at about €15.0 billion (US$16.4 billion or RM70.3 billion). 

Sanofi shares slipped as much as 0.6% in early Paris trading on Friday. The stock has gained about 12% this year, roughly in line with the rise in Bloomberg’s European pharmaceuticals index.  

The deal caps a year-long effort by Sanofi to split off its consumer-health business, as the company looks to generate better long-term value for cutting-edge therapies for cancer, rare diseases and other ailments. It follows big pharma peers GSK plc, Novartis AG, Pfizer Inc and Johnson & Johnson, which have made similar moves in recent years.

The Opella unit sells over-the-counter products, including Cenovis vitamins, DulcoLax constipation relief and Icy Hot pain relief gel. Sanofi said it would provide updates on the separation when a decision is made. 

The aim with the deal is to turn Sanofi, for the first time, into a pure play biopharma company, chief executive officer Paul Hudson has said. Sanofi is working to ramp up its research and development to ensure it can produce the next wave of blockbuster medicines. 

CD&R, which raised a record US$26 billion buyout fund last year, saw off interest from rival PAI Partners for the Sanofi unit, the people familiar said. 

The US private equity firm, founded in 1978, has been an active investor in France in recent years, teaming with Permira in July in an offer to take cybersecurity company Exclusive Networks SA private. It’s also an investor of Mobilux, one of the largest home equipment retailers in France.

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