Kirkland & Ellis, Freshfields and Bredin Prat have been called in for “exclusive negotiations” for American private equity firm Clayton Dubilier & Rice (CD&R) to buy a 50% controlling stake in Sanofi’s consumer health unit, Opella. 

Kirkland is advising CD&R on the M&A and reinvestment aspects of the deal, which values Opella at roughly €16bn. 

Meantime Freshfields is acting for Sanofi, which said it would remain a “significant shareholder” in Opella. For its part Opella employs more than 11,000 people and in 2023 generated revenue of €5.2bn. It is the third-largest business worldwide in the over-the-counter and vitamins, minerals and supplements market.

The deal has drawn criticism in France over the possible loss of a strategic asset, Reuters reported, with labour unions last week calling for strike action at Sanofi’s plants in France over fears the sale could lead to job losses. 

In a bid to allay concerns over the sale, the French government agreed to take a stake of between 1% and 2% in Opella through the public investment bank Bpifrance. 

Bredin Prat is advising Sanofi in its discussions with the French government relating to the sale. The firm said that a three-way agreement had been signed by Sanofi, CD&R and the French government that set “certain commitments” made by Sanofi and CD&R concerning the future of Opella.

The Kirkland team acting for CD&R is based across the US, Paris and London and includes corporate partners Adrian Maguire, Vincent Ponsonnaille, Laurent Victor-Michel, Jessica Corr, Emmanuel Enrici and Vincent Bergin. The team also includes technology and IP transactions partners Emma Flett, Max Harris, Daisy Darvall and Martin Schwertmann, tax partners Mavnick Nerwal, Siv Devakumar, Michael Akpomiemie, Mike Carew, Nicholas Warther, Nadine Gelli, Louise Chappey and Sonia Bouaffassa and corporate healthcare partner Kate Hardey.

Meantime the Freshfields team advising Sanofi includes London partners David Brooks (IP and corporate), Rod Carlton (competition), Chris Davis (finance), David Mendel (people and reward) and May Smith (tax). The Paris team includes Christel Cacioppo (people and reward), Charlotte Colin-Dubuisson (competition), Vincent Daniel-Mayeur (tax), Jérôme Philippe (competition) and Julien Rebibo (M&A). New York-based tax partner Steve Matays is also providing support on the deal. 

Bredin Prat’s team acting for Sanofi includes corporate partners Olivier Assant and Kate Romain, competition partner Marie-Cécile Rameau and public law associates Guillaume Léonard and Pierre-Alexandre Desgranges.

The deal is expected to complete in the second quarter of 2025 at the earliest, subject to finalisation of the definitive agreements and completion of the applicable labour consultations and customary regulatory approvals, Bredin Prat said. 

Reuters reported the deal could herald an upsurge in large private equity transactions in Europe, fuelled by cheaper financing as interest rates fall and a record amount of univested capital at funds. 

Earlier this week a consortium of investors announced it was acquiring Britain’s Nord Anglia Education in a deal that valued it at $14.5bn, with Latham & Watkins, Cravath Swaine & Moore, Ropes & Gray and Debevoise & Plimpton scoring roles on the transaction. 

The value of private equity-backed dealmaking had already jumped 40% in the first nine months of the year compared to 2023, according to data from the London Stock Exchange Group.