Sanofi Discusses Asset Swap with Boehringer Ingelheim

On Dec. 15, 2015 Sanofi and Boehringer Ingelheim announced they have entered into exclusive negotiations for an asset swap, according to a press announcement.

The deal would consist of an exchange of Merial, Sanofi’s animal healthcare business, valued at €11.4 billion ($12.4 billion), with Boehringer’s consumer healthcare business (CHC), valued at €6.7 billion ($7.32 billion). Boehringer will also pay Sanofi €4.7 billion ($5.14 billion) in cash.

The deal would allow Sanofi to become a top player in the nonprescription medicines market, and would make Boehringer the second largest player in the global animal health market.

"This transaction would allow Sanofi to become a world leader in the attractive non-prescription medicines market and would bring a complementary portfolio with highly recognized brands, allowing for mid- and long-term value creation," said Olivier Brandicourt, MD, CEO at Sanofi, in a press statement.

Sanofi expects the deal will increase its presence in Germany and Japan, where CHC presence is limited. The arrangement would also allow the company to gain leverage in the gastrointestinal and cough and cold medicine categories.

According to the release, Boehringer will make Lyon, France-Merial’s headquarters-a key operational center for its animal healthcare business. Merial has presence in 150 countries, and employs 6900 people. The companies combined animal healthcare profiles will include anti-parasitics, vaccines, and pharmaceutical specialties.

The companies say the deal is subject to regulatory approvals; they hope to complete the transaction in the fourth quarter of 2016. 

Source: Sanofi