Private Equity Buyers Are About to Unleash the Largest Leveraged Buyout of the Year

Private equity firms are making a big play for Sanofi's consumer health business, with binding bids from CD&R and PAI reportedly on the table. The deal could be valued at over $16 billion, making it one of the largest leveraged buyouts (LBOs) of the year.

Sanofi, a French multinational pharmaceutical company, has been looking to offload its consumer health division as part of a broader strategy to focus on its core prescription medicines business. The company has been in talks with potential buyers for several months, and it appears that CD&R and PAI are the two frontrunners.

CD&R, a US-based private equity firm, has a long history of investing in the healthcare sector. The firm has a strong track record of creating value in its portfolio companies, and it's likely that it will take a similar approach with Sanofi's consumer health division.

PAI, on the other hand, is a European private equity firm that has also invested heavily in the healthcare sector. The firm has a strong presence in Europe and a proven track record of driving growth in its portfolio companies.

Sanofi's consumer health business is a major player in the global market, with a portfolio of well-known brands such as Allegra and Centrum. The division generates billions of dollars in revenue each year, making it an attractive target for private equity firms looking to invest in the sector.

While neither CD&R nor PAI has commented publicly on the deal, sources close to the matter suggest that both firms are highly motivated to complete the acquisition. The deal is expected to be financed through a combination of debt and equity, with the private equity firms likely to contribute a significant portion of the purchase price.

Sanofi's CEO has stated that the company is poised for growth from new drugs, and the sale of the consumer health division is seen as a key part of this strategy. The company has a number of promising pipeline products in development, and the sale of the consumer health business will give it the resources it needs to invest in these opportunities.

The deal is subject to regulatory approval, but it's expected to close in the coming months. If completed, the acquisition would be one of the largest LBOs of the year, and would mark a significant milestone for the private equity industry.