The French pharmaceutical group confirmed this Monday, October 21, the upcoming sale of its subsidiary which produces Doliprane to the American fund CD&R. The Bercy ministers detailed the State’s entry into the capital of Opella, to the tune of 2%, as well as the guarantees obtained on the maintenance of activity in France, accompanied by financial sanctions.
Opella, the Sanofi subsidiary specializing in non-prescription products and in particular Doliprane, will be sold at 50% to the American CD & R fund, but will also be the subject of a tripartite agreement including the State. This was confirmed on Monday by the Minister of the Economy, Antoine Armand during a press conference, specifying that the State had obtained “guarantees” on employment, production and development of the subsidiary, with significant penalties in the event of non-compliance. “The State, via Bpifrance, will be a shareholder to ensure this,” he added, confirming information from Figaro published earlier this evening.
An operation confirmed by Sanofi the French pharmaceutical group this Monday, October 21 in the morning: “Sanofi and CD&R have entered into exclusive negotiations for the potential sale and acquisition of a 50% controlling stake in Opella”according to a press release from the firm, which specifies that the CD & R offer is “firm and fully funded”.
Opella’s valuation is based on an enterprise value of around 16 billion euros, Sanofi emphasizes. The public investment bank “Bpifrance should participate as a minority shareholder of around 2%”specifies Sanofi in its press release. In this project, Sanofi should remain “a significant shareholder”, is assured in the text.
40 million euros fine in the event of production stopping in France
The State has imposed guarantees on “the sustainability of the Lisieux and Compiègne production sites, with firm commitments to maintaining a minimum level of added value produced on these sites for 5 years” and a penalty “which could amount to 40 million euros will apply in the event of cessation of production on these two sites”. Another commitment is to maintain the headquarters and R&D activities in France as well as “employment protection in France with in particular a penalty of €100,000 per job eliminated by forced redundancy”. Sanofi and CD&R also commit to “a precise investment objective of 70 million euros cumulative over the next five years” with a financial penalty in the event of a deviation, as well as on a minimum production volume of Doliprane, Lanzor and Aspegic, always under penalty of a fine. Furthermore, Opella is also committed to maintaining its supplies from French suppliers and subcontractors, in particular the producer of the active ingredient in paracetamol, the Sequens group, through a long-term supply contract. “Failure to do so will result in a penalty of up to 100 million euros.”
The improved offer, announced Thursday, from another takeover candidate, the French investment fund PAI Partners, backed by international investors, was therefore unsuccessful. CD & R, with which Sanofi entered into discussions on October 11, is a large American fund which has invested in France for around fifteen years (notably in Rexel, Spie, Socotec, But and Conforama) and supports several pharmaceutical companies such as Inizio and Sharp. The pharmaceutical group has ensured since day one that “this project will have no impact on employment in France” and that it aims to grow Opella by relying on a financial partner ready to invest in this market closer to mass consumption than to pharmaceutical activity.
The unions fear a «social coffers» in the 1,700 jobs Opella has on French soil, including 480 on its Compiègne (Oise) site and 250 in its Lisieux (Calvados) factory, dedicated to the best-selling drug in France.
Update : this Monday, October 21 at 9:27 a.m. with declarations from Bercy ministers
