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Private equity firms are lining up for Sanofi’s (NASDAQ:SNY) consumer healthcare division, seeking debt packages of about €7.5B ($8.16B), making a potential deal one of the largest leveraged buyouts in recent years, Bloomberg reported Thursday.
The division is said to have attracted PE firms, including Blackstone (BX), Bain Capital (BCSF), CVC Capital Partners, and KKR & Co. (KKR). Bloomberg reported in March that a potential deal could value the division at about $20B.
According to people familiar with the matter, future bidders are ready to contact banks and direct lenders seeking financing for the acquisition.
If they succeed, their debt package would be among the largest PE-led financing deals in recent months, including the $8.64B raised in the partial buyout of Worldpay and the $9B package for Truist Financial’s (TFC) insurance brokerage business.
The news comes as the Frech drugmaker is weighing a separation of its division responsible for over-the-counter products such as Phytoxil cough syrups and Icy Hot pain relief creams.
A company representative said that the company is still reviewing various separation solutions, and the most likely scenario would be a stock market listing expected as early as Q4.
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