Pfizer in talks to sell USD 2bn pumps arm to Smiths; Smiths eyes asset sales
Pfizer (NYSE:PFE), the New York-based pharma giant, is in negotiations to sell its pumps and devices operation to the British engineering conglomerate Smiths Group (LON:SMIN), The Sunday Times reported.
City sources cited in the report said preliminary talks have so far taken place regarding the USD 2bn pump subsidiary. Several private-equity firms and European trade groups are also interested in the Pfizer business, the report said.
Pfizer is believed to have engaged Goldman Sachs to manage the sale of the devices unit, which changed hands in the company’s USD 17bn acquisition of generic medicines manufacturer Hospira last year, the report noted.
The prospect of a deal could prompt Smiths to start selling assets, the report said. The group’s US-based Interconnect and Flex-Tek subsidiaries are believed to be the most likely to be divested and prospective buyers have already been identified by Smiths, the item reported. It added that Smiths might also seek to fund the Pfizer deal by tapping its shareholders for new capital.
Sunday Times