By outdoor-nature-child.com In an exclusive interview, we delve into the recent developments surrounding the potential acquisition of a 50% stake in Opella, Sanofi’s consumer healthcare division, by the US private equity firm Clayton, Dubilier & Rice (CD&R).
On October 11, concerns arose when news broke that CD&R was in talks to purchase a significant stake in Opella, which is known for producing popular over-the-counter medicines like Doliprane and Dulcolax. French government officials expressed apprehensions about potential job losses and the implications of foreign ownership.
On October 21, Sanofi confirmed it had entered exclusive negotiations with CD&R, valuing the consumer healthcare arm at approximately €16 billion. Notably, France’s state-owned investment bank, Bpifrance, will also acquire a 2% stake and a board seat in Opella, ensuring some level of local oversight.
In a trilateral agreement reached over the weekend, French Economy Minister Antoine Armand emphasized that the new American owners will be required to maintain key manufacturing facilities, research operations, management, and the existing workforce of 1,700 employees in France. To bolster this commitment, CD&R has pledged to invest €70 million in the French operations over the forthcoming five years.
Armand stated, “To ensure that these guarantees are respected with the utmost rigour and firmness, there will be firm, immediate and far-reaching sanctions.” Under the terms of the agreement, Opella would incur a €40 million penalty if it were to cease production at its factories in Lisieux and Compiègne, which are vital for producing Doliprane and other essential medications.
The reaction from workers has been impassioned; employees at both factories have been on strike in protest against the proposed deal. The agreement also stipulates that for every employee laid off for economic reasons, Opella would face a €100,000 fine. Furthermore, Opella is committed to sourcing the active ingredient for paracetamol from the French supplier Seqens under a long-term contract, with a €100 million penalty for any breach of this agreement.
Sanofi has indicated that it will maintain a significant stake in Opella, redirecting its focus towards developing innovative medicines and vaccines. The decision aligns with broader industry trends, as other major pharmaceutical companies like Johnson & Johnson, Pfizer, and GSK have pursued similar spin-offs to concentrate on research and development.
Paul Hudson, Sanofi’s British-born CEO, remarked, “We chose the group with the best capabilities and people to help us enable the long-term success of the business.” He also welcomed Bpifrance as a supporter in Opella’s development journey, reflecting a collaborative spirit in navigating this significant transition in the consumer healthcare landscape.