GlaxoSmithKline PLC GSK

DJ GSK Restarts Europe Consumer Drugs Sale Process - Sources

 
   By Jessica Hodgson and Marietta Cauchi 
   Of DOW JONES NEWSWIRES 
 

LONDON (Dow Jones)--GlaxoSmithKline PLC (GSK) has restarted its attempt to dispose of the European part of a portfolio of consumer drugs, people with knowledge of the situation said Wednesday.

At least one trade bidder and a number of private equity firms are preparing to submit first-round offers ahead of a deadline later Wednesday, these people said.

U.S. buyout giant Bain Capital LLC has teamed up with Belgian drugs group Omega Pharma and Netherlands-based private equity firm Waterland to submit an offer, the people said.

Private equity firms Advent International and Avista are also expected to submit offers, these people said. It is unclear whether Warburg Pincus, which has previously looked at the assets, is looking in the renewed process.

Sales of these types generally involve the intellectual property related to the drugs, such licensing rights, brands and contracts. It is unclear what the value of the portfolio would be.

GSK's attempt to jump-start the process comes more than two months after the company, the U.K.'s largest pharmaceuticals group, agreed to sell a collection of North American non-prescription drugs to Prestige Brands Holwings Inc. (PBH) for GBP426 million in cash.

The drug maker hired Goldman Sachs Group Inc. (GS) to sell the assets on a global basis in 2011 for a reported price tag of between GBP1.5 billion and GBP2 billion. Glaxo said it planned to close a deal by the end of 2011. The fresh sale process is GSK's attempt to conclude the sale.

- By Jessica Hodgson, Dow Jones Newswires; + 0207 842 9373; jessica.hodgson@dowjones.com

(Sten Stovall contributed to this article.)

(END) Dow Jones Newswires

March 07, 2012 11:30 ET (16:30 GMT)

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