GlaxoSmithKline in Second Round Talks with PE Funds

GlaxoSmithKline is in second round talks with a group of private equity funds and strategic buyers interested in buying its non-core over-the-counter products, Reuters reported, citing the Financial Times. The sale could fetch as much as 1.5 billion pounds ($2.4 billion). Bain Capital, Blackstone and German pharmaceutical group Boehringer Ingelheim are reported to be in the bidding process.

(Reuters) – GlaxoSmithKline has taken a group of private equity funds and strategic bidders through to a second round of the sale of its non-core over-the-counter products, the Financial Times reported on Friday.

The sale is estimated to be worth 1.5 billion pounds.

The newspaper cited people familiar with the situation as saying that U.S. buyout funds Bain Capital, Blackstone and German pharmaceutical group Boehringer Ingelheim were still in the bidding process.

GlaxoSmithKline told the FT that first-round bids had been due on August 8 and the sale is expected to close by year end.

Other interested groups in the auction include the private equity fund Thomas H Lee, Bayer and the Brussels-listed pharmaceutical company Omega Pharma, but it is not clear whether any are still involved in talks.

One unknown source cited in the article said final-round bids are expected to be tendered at the end of September or early October.

Bain Capital is expected to be interested in a bid for the whole business, although some of the other interested parties may only want parts of it, according to the FT.

(Reporting by Stephen Mangan, editing by Bernard Orr)