Sanofi and Boehringer Ingelheim sign up to business swap

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Sanofi and Boehringer Ingelheim have reached definitive agreements to swap Sanofi’s Animal Health and Boehringer Ingelheim’s Consumer Healthcare businesses in what is described as “a win” for both parties.

The pharmaceutical firms have signed contracts to secure the strategic transaction initiated in December 2015 which consists of an exchange of Sanofi’s animal health business (“Merial”) and Boehringer Ingelheim’s consumer healthcare (CHC) business.

The transaction is expected to close by year-end 2016 and remains subject to approval by all regulatory authorities in different territories.

Prof Dr Andreas Barner, Chairman of the Board of Boehringer Ingelheim, said: “This is a win for Boehringer Ingelheim and Sanofi alike. Moreover, it is one of the most significant steps in our corporate history. As a research based pharmaceutical company, we will substantially enhance our position in the future market for Animal Health and will prospectively be one of the largest global players in this segment. The similarity in culture and approaches of BI and Sanofi will ensure that the businesses acquired by the other partner will develop well in the future.”

Dr Olivier Brandicourt, Chief Executive Officer, Sanofi, said: “In signing these contracts, we are meeting one of the key strategic goals of our roadmap 2020, namely  to become a leader in consumer healthcare and a leading diversified global human healthcare company.”

Upon successful completion, Boehringer Ingelheim’s CHC business – with an enterprise value of €6.7 bn – would be transferred to Sanofi. Sanofi’s Merial – with an enterprise value of €11.4 bn – would be transferred to Boehringer Ingelheim. The transaction includes a cash payment to Sanofi of €4.7 bn to reflect the difference in value of the two businesses.