LONDON, June 27 (APM) - Sanofi and Boehringer Ingelheim said on Monday they have signed a deal to swap the French company's animal health business for the family-owned German group's consumer healthcare (CHC) operation.
The deal, first made public in December, will be completed by the end of the year (APMMA 45452), they said in a joint statement.
Sanofi's chief executive Dr Olivier Brandicourt 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.
"This business swap will bring a complementary portfolio to our consumer healthcare activity with highly recognised brands, allowing for mid and long-term value creation, and enhancement of our market penetration in some major countries."
Boehringer's chairman Dr Andreas Barner said the deal was a win for both companies. "Moreover, it is one of the most significant steps in our corporate history.
"It demonstrates the consistent orientation of our business towards innovation-driven sectors. 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 deal will consist of an exchange of Sanofi's Merial arm, with an enterprise value of 11.4 billion euros, with Boehringer Ingelheim's CHC division with an enterprise value of 6.7 billion euros. Boehringer will also pay 4.7 billion euros in cash to Sanofi.
They said that with this transaction, Sanofi will integrate Boehringer Ingelheim's CHC business in all countries except China.
Joint CHC sales would amount to approximately 4.9 billion euros based on 2015 global sales.
Sanofi said the deal will enhance its position in several of its strategic categories - pain care, allergy solutions, cough and cold care, feminine care, digestive health and vitamins, minerals and supplements.
They said that in accordance with their commitment at the beginning of the negotiations, the companies agreed that Lyon and Toulouse in France would be key operational centres of Boehringer's animal health business, including business operations, research and development and manufacturing facilities in Lyon and the production site in Toulouse.
"As the U.S. market is an important part of Merial's business, Boehringer Ingelheim would pay particular attention to sustain the momentum of the U.S. operations," it said.
"Germany would be a key centre of Sanofi's CHC business, including in particular gastro-intestinal and cough & cold categories that will benefit from the strong capabilities of current Boehringer Ingelheim teams."
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