Sanofi, which had fully acquired Zentiva in a deal worth about €1.8bn in 2009, is looking to sell it after considering the European generics business to be non-core.
The sale is also part of the French drugmaker’s strategy to simplify and reshape its overall business.
Headquartered in Prague, Czech Republic, Zentiva has a generics portfolio that covers several therapeutic areas like cardiovascular, central nervous system, anti-infectives, anti-inflammatory and pain, and respiratory.
The company, with manufacturing facilities in Prague and Bucharest, manufactures and distributes over 350 million packs of generic products annually, which are sold across 25 European countries.
Sanofi CEO Olivier Brandicourt said: “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 generic unit in Europe, we have determined that transferring this business to Advent is the best option to ensure its long-term success.”
Advent International plans to collaborate with Sanofi to create a new independent operation for the generics business.
The private equity firm also plans to support the management team in investing in the Zentiva’s operations, production facilities and research and development (R&D) pipeline.
Advent International European Healthcare team managing director and co-head Tom Allen and Advent International managing director and France head Cédric Chateau said: “We have long been attracted to the generics 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.”
Expected to be completed by the end of this year, the transaction will be subject to execution of definitive agreements, followed by approvals from relevant regulatory authorities among other conditions.
Image: Sanofi headquarters in Paris, France. Photo: courtesy of Sanofi.