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Sanofi (NASDAQ:SNY) has sought initial bids for its $20B consumer healthcare spinoff as the French drugmaker moves forward with its divestment plans, which include a potential public listing, Bloomberg News reported Tuesday, citing people familiar with the matter.
According to the people, the Paris-based pharma giant has requested that would-be buyers submit first-round bids by mid-July for the unit, whose portfolio of over-the-counter (OTC) products includes Icy Hot pain relief gels.
Buyout firms Advent International and France’s PAI Partners are said to be among the front-runners. Blackstone Inc., Clayton Dubilier & Rice, CVC Capital Partners Plc, and TPG Inc. are also cited as potential contenders for a buyout. EQT AB is said to have opted out of the race after indicating initial interest.
Given intense scrutiny on foreign takeovers amid ongoing parliamentary elections in France, PAI Partners is considering that it is racing ahead of others as the only national bidder for the business. However, the size of the transaction is likely to force it to find partners for a buyout, the people said.
Meanwhile, Sanofi (SNY) is expected to keep a sizable minority stake, cutting the capital requirements needed from buyers.
In October, the company announced plans to separate its consumer care unit as early as Q4 2024.