According to the latest reports, KKR & Co. (NYSE:KKR) is set to sell Capsugel to largest bidder Switzerland’s Lonza Group AG for more than $5 billion.
However reports said that the deal isn’t certain and their might be some other bidders circling around. It isn’t mentioned whether the price includes debt or not.
Morristown, N.J –based Capsugel, creates capsules used for the delivery of drugs and food supplements. Its designs are used in vitamins, over-the-counter drugs, dietary supplements and prescription medicines.
Private-equity firm KKR bought Capsugel from Pfizer Inc. for $2.4 billion in 2011. The company’s sale appealed a mix of health care, industrial and Asian suitors.
Meanwhile Lonza, also produces a range of chemical, health care and personal-care products. The company was originated in 1897 as an electricity supplier, Lonza has a market value of CHF9.4 billion or $9.2 billion, so a purchase of Capsugel would be a big bite.
Lonza has been searching for an appropriate deals. Earlier in 2016 the company held unsuccessful talks to buy drug-development company Catalent Inc. for around $4 billion.
Although generally health care purchases has plummeted from last year’s brisk pace, companies that offers ancillary products and services to the pharmaceutical and other segments have publicized several combinations lately.
Recently Blackstone Group LP completed takeover of healthcare-staffing provider Team Health Holdings Inc. for reported $3 billion. Software-and-data Company IMS Health Holdings Inc. in October combined with outsourcer Quintiles Transnational Holdings Inc. in an agreement worth nearly $9 billion.
Furthermore, another private-equity firms Carlyle Group LP and Hellman & Friedman LLC have reportedly been looking for buyers for drug-research company Pharmaceutical Product Development LLC, which could raise about $5 billion.