French healthcare group Sanofi is in exclusive talks to sell its Zentiva European generics drugs arm to private equity firm Advent International for 1.9 billion euros ($2.4 billion), the companies said on Tuesday. Sanofi said the sale was expected to be completed before the end of the year, and Advent's offer was binding and fully financed. The 1.9 billion euros price is an enterprise value, including equity and debt. Sanofi has been reshaping its business in recent months, spending more than $16 billion to buy biotech company Ablynx and US haemophilia specialist Bioverativ, but also selling off some assets.
Earlier last week, it sold some brands to Charterhouse Capital Partners' Cooper-Vemedia drugs manufacturing arm for 158 million euros. "Following a comprehensive review of strategic options for our generics unit in Europe, we have determined that transferring this business to Advent is the best option to ensure its long-term success," Sanofi Chief Executive Olivier Brandicourt said in a statement.
The planned sale of Zentiva began in October after Sanofi spent more than a year carving out the division to create a stand-alone company that could be sold to one of its competitors or to an investment fund.