Sanofi and Boehringer-Ingelheim Sign on Business Unit Swaps

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The companies agree to exchange ownership of Sanofi’s animal health and Boehringer Ingelheim’s consumer healthcare businesses.

Sanofi and Boehringer Ingelheim announced on June 27, 2016, the signing of contracts to secure a transaction initiated in December 2015 for the exchange of Sanofi’s Merial animal health business and Boehringer Ingelheim’s consumer healthcare (CHC) business. The transaction is expected by year-end 2016, subject to approval by regulatory authorities in different territories.

Under the agreement, Boehringer Ingelheim’s CHC business, valued €6.7 billion ($7.4 billion), would be transferred to Sanofi. Sanofi’s Merial business, valued at €11.4 billion ($12.5 billion), would be transferred to Boehringer Ingelheim. A cash payment to Sanofi of €4.7 billion ($5.2 billion) would cover the difference in value of the two businesses.

Boehringer Ingelheim reports that combining its portfolios in anti-parasitics, vaccines, and pharmaceutical specialties with Merial would put the combined company into a more competitive position in the key growth segments of the industry. The company estimates that the animal health business would more than double its sales to approximately €3.8 billion ($4.2 billion), based upon 2015 global sales, according to a press statement.


Sanofi reports that it would integrate Boehringer Ingelheim’s CHC business in all countries except China. The transacation would enhance Sanofi’s position in pain care, allergy solutions, cough and cold care, feminine care, digestive health and vitamins, and minerals and supplements. Joint CHC sales would amount to approximately €4.9 billion ($5.4 billion), excluding Venezuela, based upon 2015 global sales, according to a company press statement.