The US private equity firm Clayton, Dubilier & Rice (CD&R) is close to completing a deal to acquire the Consumer Healthcare division of the French pharmaceutical company Sanofi. According to five people with direct knowledge of the process, CD&R has made an offer that narrowly exceeds the consortium led by the French private equity firm PAI. The deal could be finalized in the coming days.

Sanofi will retain around 50% of its business sectors in over-the-counter pain and allergy medications such as Doliprane and Allegra, with the intention of further divesting these shares in the coming years. The total value of the business is estimated at approximately 15.5 billion euros. This transaction represents the largest healthcare deal in Europe this year and follows a series of similar business unit sales by major pharmaceutical companies that are increasingly focusing on the riskier but more lucrative drug research and development.

Sanofi confirmed the developments on Friday in an official statement. CD&R and PAI did not comment on the offer. France's Finance and Industry Ministers emphasized in a joint statement that CD&R is considered a "serious investor," but reminded the parties of state requirements. This includes ensuring the supply of essential medicines and retaining the headquarters and production facilities – known as Opella – in France. "This proposed sale does not question the production of Doliprane or other essential medicines manufactured by Opella in our territory, nor the supply of the market with these products. This is, of course, part of the required commitments," the ministers explained.

CD&R has established itself as a major player in the field of acquisitions in recent years, acquiring Western companies such as Ball Corp, Heineken, and Oriflame. These acquisitions have doubled the revenue volume of Arnest, the company behind CD&R, to around 143 million USD last year and increased the core profit by 24 times. CD&R's aggressive investment and acquisition strategy contrasts with the efforts of other companies to reduce debt and promote sustainable growth.

Sanofi had announced plans to spin off the division a year ago. CEO Paul Hudson publicly stated at the time that a public listing of the Consumer Healthcare unit was "the most likely route." Now, however, the focus appears to be shifting towards a private acquisition by private equity firms. Unlike in previous acquisitions, Sanofi retains influence by selling a large stake and can benefit from the stable revenues of the Consumer Healthcare unit.

The latest development shows how major pharmaceutical companies are strategically realigning by divesting less profitable but stable business segments to focus resources on the development of innovative drugs. Despite the challenge from the increasing demands of the French government, the acquisition by CD&R remains an important step for Sanofi to strengthen its position in the global market and secure future growth.