Private equity firms circle GlaxoSmithKline’s US$54B consumer arm
BNN Bloomberg
GlaxoSmithKline Plc’s consumer unit is drawing interest from private equity firms in what could lead to the biggest buyout of all time, people with knowledge of the matter said.
GlaxoSmithKline Plc’s consumer unit is drawing interest from private equity firms in what could lead to the biggest buyout of all time, people with knowledge of the matter said.
The London-listed drugmaker’s advisers are informally fielding interest in the operations alongside preparations for a listing, the people said, asking not to be identified because the information is private. Advent International, Blackstone Inc., Carlyle Group Inc., CVC Capital Partners, KKR & Co. and Permira are among potential suitors evaluating the business, according to the people.
The consumer unit could also attract some of the world’s biggest pharmaceutical and consumer goods companies, the people said. The unit could be valued at 40 billion pounds (US$54 billion) or more in any deal, the people said.
Shares in Glaxo rose as much as 4.8 per cent in London trading Tuesday. The stock was up 2.3 per cent at 11:30 a.m., giving the company a market value of about 72 billion pounds.
Glaxo said Tuesday that the company is on track to demerge the unit in mid-2022 and repeated that the board will evaluate any options that would boost shareholder value.
The consumer health business “with strong growth prospects which will be further enhanced by its access to the capital markets and ability to set its own strategy” as an independent company, Glaxo said.
