Blackstone may soon buy Sanofi's consumer health unit

Sanofi SA (EPA: SAN) is gaining at writing following a report that buyout firms have shown interest in buying its consumer health unit.

Blackstone and others are interested in the said business

Anonymous sources told Bloomberg today that private equity companies including Bain Capital, Avent International, and even Blackstone have lined up to take the aforementioned business from Sanofi.

The news arrives months after $SAN was reported interested in separating its consumer health unit that sells products like Icy Hot pain relief gels and Phytoxil cough syrups.

Earlier in February, the pharmaceutical behemoth said its operating income fell short of expectations in the fourth financial quarter due to currency headwinds and generic competition.

Last month, Paul Hudson - the chief executive of Sanofi SA said artificial intelligence was an opportunity for his company that has the "world's best immunology pipeline" (read more).

Sanofi’s consumer health unit may be valued at $20 billion

Note that advisors to the French multinational have already confirmed that it’s open to unloading its consumer health segment provided that the right valuation is proposed.

A deal with Blackstone or any of the other potential suitors could value that unit at about $20 billion, as per the Bloomberg report on Tuesday.  

Sanofi may decide in favour of keeping a stake in the consumer health business following a buyout transaction, the anonymous sources added.

Spokespeople for the named private equity companies refused to comment on the Bloomberg report today – perhaps because deliberations are only preliminary at this stage and possibility of them choosing against formally proposing an acquisition remains on the table.