Pharma BD Deal Intelligence

Sanofi-Aventis / Merial Limited (Merck's 50% interest)

2009 · Acquisition/Merger · $4.0B · Complete

CALLED IT — OFF BY 10

Sanofi bought out Merck's Merial stake for $4B in 2009, grew it into a full animal-health unit worth an implied ~€11.4B by 2016, then swapped the entire business away to Boehringer Ingelheim for BI's Consumer Healthcare unit plus €4.7B cash — a financially strong exit but a full strategic reversal, since Sanofi no longer owns any of the asset it bought.

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The coverage arc

Jul 30, 2009 Merck & Co. Form 8-K (Exhibit 99.1, joint press release) Bullish

Merck CEO Richard Clark: 'These agreements should enable us to proceed expeditiously with the closing of our merger with Schering-Plough in the fourth quarter…

Aug 04, 2009 Canadian Poultry Magazine Neutral

Merck will sell its 50 percent interest in the companies' current animal health joint venture, Merial Limited (Merial), to sanofi-aventis for $4 billion (US)…

Mar 28, 2011 Chemical & Engineering News Neutral

C&EN reported the abandonment of the Merial-Intervet recombination, framing the 2009 Sanofi buyout as still strategically sound for Sanofi's diversification…

Source summaries from our enrichment pipeline; follow links for originals.

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$4B cash for Merck's 50% stake in animal health JV. Animal health (note: borderline pharma but veterinary therapeutics). Source: Pharma Times, Modern Healthcare, AVMA.

Did it work? Outcome assessment

Sanofi bought out Merck's Merial stake for $4B in 2009, grew it into a full animal-health unit worth an implied ~€11.4B by 2016, then swapped the entire business away to Boehringer Ingelheim for BI's Consumer Healthcare unit plus €4.7B cash — a financially strong exit but a full strategic reversal, since Sanofi no longer owns any of the asset it bought.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Sanofi-Aventis / Merial Limited (Merck's 50% interest) (this deal)2009$4.0B65
Sanofi-Aventis / Symbion Consumer (Primary Health Care)2008$544M71
Sanofi-Aventis / Acambis plc2008$548M36
Sanofi-Aventis / Shantha Biotechnics Limited2009$784M34
Sanofi-Aventis / Fovea Pharmaceuticals SA2009$541M23
Sanofi-Aventis / BiPar Sciences, Inc.2009$500M8
Sanofi-Aventis / ImmunoGen Inc.2005$18M

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