Deals

CD&R in Talks With Banks Over Debt to Fund Equity for Sanofi Arm

  • Consumer business could be valued at €15 billion in a sale
  • Additional loan would finance some of equity check for buyout

   The Sanofi unit, which sells non-prescription medicines, could be valued as much as €15 billion in a sale.

Photographer: Nathan Laine/Bloomberg
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Clayton Dubilier & Rice is discussing the possibility of using borrowed money to fund a part of the equity check in its bid for Sanofi’s €15 billion ($16.6 billion) consumer health division, according to people familiar with the matter.

The New York-based buyout firm is talking with banks about obtaining so-called back leverage, said the people, who asked not to be identified because the process is confidential. That’s a type of loan that buyout shops can obtain to finance part of an equity investment in a specific company.