Global investment group Advent International says it has entered into exclusive negotiations to buy Sanofi’s generics arm Zentiva for €1.9 billion ($2.4 billion). The transaction is expected to close by the end of the year.

The move, which comes as Sanofi continues to simplify and reshape its business operations, would create a new, independent, European generics leader, Advent said.

“Zentiva is a robust business with a highly talented workforce and we believe it has demonstrated its potential for growth. Following a comprehensive review of strategic options for our generics unit in Europe, we have determined that transferring this business to Advent is the best option to ensure its long-term success,” said Olivier Brandicourt, Sanofi’s Chief Executive.

“We have long been attracted to the generic pharmaceutical sector as it enables more people to access high quality treatments by lowering their cost,” said Advent Managing Directors Tom Allen and Cédric Chateau. “We believe that Zentiva is a great platform, full of talented people, who we can invest behind to build a new, independent, European generics leader”.