LONDON/PHILADELPHIA Banks including Goldman Sachs and JPMorgan stand to earn up to $125 million in fees after Sanofi-Aventis SA finally clinched a $20.1 billion-plus deal to buy Genzyme Corp.
Sanofi's banks may receive $50 million to $60 million for their mergers and acquisitions (M&A) advice, while Genzyme's financial advisers could make $53 million to $65 million, according to estimates by Freeman & Co, a consultancy.
Sanofi's lead financial advisers were Evercore Partners and JPMorgan Chase & Co, while Credit Suisse and Goldman Sachs advised Genzyme, Sanofi said on Wednesday.
Evercore's banking team included Francois Maisonrouge and Evercore founder and Chairman Roger Altman, as well as John Honts, Jeff Goater, Fausto Borotto and Eddy Kim.
Maisonrouge, the son of former IBM executive Jacques Maisonrouge, previously worked on deals such as advising Wyeth on its sale to Pfizer Inc and advising TPG on its acquisition of IMS Health.
Maisonrouge joined the boutique in 2007 after 15 years at Credit Suisse, where he worked with clients such as Johnson & Johnson, Schering-Plough, Wyeth, GlaxoSmithKline, Roche and Teva Pharmaceutical.
Sanofi's team at JPMorgan was led by Robbie Huffines and included Henry Gosebruch, Isabelle Seillier and Laurent Dhome.
Genzyme's team at Credit Suisse included Vice Chairman Scott Lindsay, as well as Stuart Smith, Brian Gudofsky and Robert Arsov.
The Goldman Sachs banking team included Marshall Smith, Jack Levy, Jason Silvers and William Anderson.
BNP Paribas and Societe Generale, which along with JPMorgan arranged $15 billion of loans for Sanofi, will reap separate lending fees and may also receive M&A fees.
So too could Morgan Stanley. In November, sources familiar with the matter said Sanofi had hired the Wall Street bank as an additional adviser.
The law firm Weil, Gotshal & Manges LLP advised Sanofi, while Ropes & Gray LLP advised Genzyme. Wachtell, Lipton, Rosen & Katz advised Genzyme's independent directors.
Companies rarely disclose M&A fees or "all-in merger costs," a much bigger figure that includes fees paid to lenders, lawyers, accountants, printers and others.
However, U.S. Securities and Exchange Commission filings provide some recent examples in healthcare.
Last year Millipore, a U.S. maker of biotechnology tools, agreed to pay up to $33 million to Goldman Sachs for advice on its $6 billion sale to Germany's Merck KGaA, while JPMorgan earned $21.7 million advising Biovail Corp of Canada on its tie-up with Valeant Pharmaceuticals International.
(Reporting by Quentin Webb in London and Jessica Hall in Philadelphia; Editing by David Cowell, John Wallace and Steve Orlofsky)