Advent to invest in Zentiva to create a new, independent European generics leader
Advent International and Sanofi have entered into exclusive negotiations under which Advent would acquire Zentiva, Sanofi's European generics business for €1.9 billion.
Advent's offer is firm, binding and fully financed.
Advent is a global investor, with more than 25 years of experience of investing in the healthcare sector.
It has extensive experience of executing corporate carve-outs and will work collaboratively with Sanofi to form a new independent operation.
Advent will support the Zentiva management team to invest in the company's operations, production facilities and R&D pipeline.
"Zentiva is a robust business with a highly talented workforce and we believe it has demonstrated its potential for growth."
"Following a comprehensive review of strategic options for our generics unit in Europe, we have determined that transferring this business to Advent is the best option to ensure its long-term success," said Olivier Brandicourt, Chief Executive Officer, Sanofi.
"We have long been attracted to the generic pharmaceutical sector as it enables more people to access high quality treatments by lowering their cost."
"We believe that Zentiva is a great platform, full of talented people, who we can invest behind to build a new, independent, European generics leader," jointly commented Tom Allen, Managing Director and co-head of Advent International's European Healthcare team and Cédric Chateau, Managing Director and head of Advent International in France.
The transaction is expected to close by the end of 2018, subject to finalisation of definitive agreements, completion of the appropriate social processes and approval of relevant regulatory authorities.
This process will be conducted in full respect of social dialogue with Sanofi employee representatives.