Sanofi Aventis in US$20bn takeover of Genzyme
16 Feb 2011
Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) is taking over
and Genzyme Corporation (Nasdaq: GENZ) for approximately $20.1 billion.
Each Genzyme shareholder will receive additional cash payments if
specified milestones related to Lemtrada (alemtuzumab MS), Cerezyme
or Fabrazyme are achieved.
The transaction is expected to
close early in the second quarter of 2011.
"This agreement with Genzyme is both consistent with our
long-term strategy and creates significant long-term value for our
shareholders," said Christopher A. Viehbacher, Chief Executive
Officer of sanofi-aventis. "This transaction will create a
meaningful new growth platform for sanofi-aventis while expanding
our footprint in biotechnology. We expect it to be accretive from
year one, and the CVR structure, which served as an important value
bridge between our two companies, rewards both Genzyme and sanofi-aventis
shareholders, particularly if Lemtrada outperforms the market's
current expectations. "
"This transaction represents a new beginning for Genzyme," said
Henri A. Termeer, Chairman of the Board, President and Chief
Executive Officer of Genzyme Corporation. "Genzyme has a
record of innovation and a unique and pioneering approach to serving
patients. We also share an exciting vision of the future, one
in which Genzyme and sanofi-aventis grow and innovate by developing
breakthrough treatments that change the lives of people with serious
diseases. Sanofi-aventis believes in what we do, in our people
and in our potential. We look forward to building a
sustainable future together."
Genzyme will become an important new platform in sanofi-aventis'
sustainable growth strategy and expand the company's presence in
biotechnology. Sanofi-aventis says it intends to make Genzyme its
global center for excellence in rare diseases and the acquisition
will reinforce sanofi-aventis' commitment to the greater
Boston area, where it already has a
Beyond rare diseases, Genzyme has built strong
Renal-Endocrinology, Hematology-Oncology and Biosurgery businesses
that are complementary to existing sanofi-aventis businesses and
include highly differentiated, market-leading products that provide
significant benefit to patients.
Sanofi-aventis will work with Genzyme through the integration
process to develop plans to enhance the opportunities for these
businesses going forward. Consistent with sanofi-aventis' approach
in other transactions, Genzyme will retain its corporate brand.
Henri A. Termeer will resign as Chairman of the Board, President and
Chief Executive Officer of Genzyme following the close of the
transaction, but will advise on the integration in his role as
Co-Chairman of the Integration Steering Committee with
Christopher A. Viehbacher.