OR WAIT 15 SECS
December 15, 2015.
The proposed transaction would consist of an exchange of Sanofi animal health business (Merial), with an enterprise value of $12.5 bn, and BI's consumer healthcare (CHC) business, with an enterprise value of $7.4 bn. BI's CHC business in China would be excluded from the transaction. The transaction would also include a gross cash payment from BI to Sanofi of $5.2 bn.
The transaction reportedly allows Sanofi to become the number one ranked player in CHC with expected pro forma sales of approximately $5.6 bn in 2015 and a global market share close to 4.6%. Sales of BI CHC business (excluding China) are estimated at about €1.6 bn for 2015 and are said to be "highly complementary" with those of Sanofi CHC, both in terms of products and geographies.
Germany would become a key center of Sanofi CHC business, including in particular for gastro-intestinal and cough & cold categories, while Lyon, France, would be a key operational center of BI's Animal Health business. BI aims to maintain business operations, R&D, and manufacturing centers in France and will "pay particular attention to sustain the momentum of the U.S. operations".