Aspen's baby formula unit attracts interest from Perrigo, Reckitt, iNova, Lactalis - report
17 MAY 2018
South Africa-based Aspen Pharmacare's [JSE:APN] baby formula unit has attracted interest from such companies as Michigan-based Perrigo [NYSE:PRGO] and UK-based Reckitt Benckise [LON:RB], according to a newswire report on 16 May.
Bloomberg, citing sources familiar with the matter, reported that Carlyle and Pacific Equity-backed Australia-based iNova and France's Lactalis are also mulling bids for the business that may be valued at between USD 1bn and USD 1.5bn in a potential deal.
Preliminary information about the unit was also sent out by Aspen to Chinese companies engaged in baby formula production, the item said. They included Health & Happiness [HKG:1112], Beingmate Baby & Child Food [SHE:002570] and Inner Mongolia Yili Industrial [SHA:600887], according to the report. Still, it remains uncertain any of the companies will place bids, the item noted.
Aspen, which in January tapped Centerview to explore options for the infant formula business known as Nutritionals including introducing a strategic partner, could choose to retain the unit should the bids be considered too low, as reported.
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