Comprehensive M&A data with integrated detailed company information

Nestle, Stada preparing bids for Merck consumer health: Reuters
Posted on Monday, 04 December 2017 15:17
Potential suitors have begun circling the consumer health division of US pharmaceutical player Merck, people with knowledge of the matter told Reuters.

According to the sources, Nestle is currently preparing a bid for the business, as are Bain and Cinven, the private equity owners of the vendor’s German peer, Stada.

The people noted that the latter pair hope to use the deal as a platform to build on Stada’s existing operations.

However, it is unlikely that many other private equity firms will be in the running as they have been discouraged from throwing their hats into the ring unless they have a portfolio company through which they can conduct the transaction, the sources said.

According to the people, JPMorgan has asked interested parties to submit approaches by a deadline of 15th December.

None of the companies involved have commented on the report at this time.

A sale of Merck’s consumer health business was first mooted back in September, when the company said it would carry out a strategic review of the activities.

Information packs were subsequently distributed to potential acquirors in November.

Merck has already completed one other asset sale this year, having divested its biosimilars business to Fresenius Kabi for EUR 656.00 million in early September. Of the total amount, EUR 500.00 million will be in the form of an earn-out, payable subject to certain financial targets being achieved.

The vendor is headquartered in New Jersey and employs around 69,000 people across more than 140 countries worldwide.

Its offering includes prescription medicines, vaccines, biologic therapies and animal health products.

Merck posted sales of USD 10.33 billion in the third quarter of 2017, down 2.0 per cent on the USD 10.54 billion recorded over the corresponding timeframe in 2016.

It recorded a net loss of EUR 56.00 million for the three months, compared to net income of USD 2.18 billion in Q3 2016.

© Zephus Ltd