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news.Sanofi and Boehringer Ingelheim have signed contracts to exchange their respective animal health and consumer healthcare businesses.
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Sanofi will transfer ownership of the €11.4bn Merial animal health business to Boehringer in return for the latter’s consumer healthcare (CHC) business, valued at €6.7bn and €4.7bn of cash.
The definitive agreements come almost six months after the companies announced they were in exclusive negotiations over the asset exchange, which does not include Boehringer’s CHC business in China.
The transaction, which is expected to complete by the end of this year, is subject to approval by all regulatory authorities in various territories.
Sales of Boehringer Ingelheim’s CHC business were €1.51bn in 2015, contributing 10% to Boehringer Ingelheim’s net sales.
Merial has operations in over 150 countries globally with more than €2.5bn of sales in 2015.
Joint CHC sales, excluding Venezuela, are expected to amount to about €4.9bn based on 2015 worldwide sales.
The Boehringer Ingelheim Animal Health business is expected to more than double its sales to about €3.8bn depending on 2015sales globally.
Boehringer Ingelheim chairman of the board Andreas Barner said: "This is a win for Boehringer Ingelheim and Sanofi alike. Moreover, it is one of the most significant steps in our corporate history.
"As a research based pharmaceutical company, we will substantially enhance our position in the future market for Animal Health and will prospectively be one of the largest global players in this segment."
Image: Boehringer Ingelheim chairman of the board Andreas Barner (left) and the company’s designated Chairman of the Board Hubertus von Baumbach (right). Photo: courtesy of Boehringer Ingelheim GmbH.