A $20 Billion Deal Would Relieve LBO Constipation
The Sanofi consumer health-care business would be a great deal for private equity — so long as industrial buyers don’t bid up the price of the laxative maker.
Will the relief last?
Photographer: Tom Kelley/Getty Images Archive Photos
The jumbo leveraged buyout is attempting a comeback. A deal for Sanofi SA’s consumer health-care business — purveyor of laxative brand Dulcolax — would be the perfect remedy for private equity’s constipation.
Advent International, Bain Capital, Blackstone Inc., CVC Capital Partners, EQT AB and KKR & Co. are mulling offers to relieve the French pharmaceutical firm of the division at a possible $20 billion valuation, Bloomberg News reported last week. Sanofi has said it plans to separate the unit, most likely by giving it a distinct listing. You can see why so many buyout shops are hoping for an outright sale instead.