Thomas H Lee Partners is in the race to acquire consumer-health assets from GlaxoSmithKline Plc and may also declare an agreement at the earliest as this week.
The company is close to entering exclusive discussions with Glaxo, said the company. Both the companies have yet to agree on price and may not reach an agreement until decided.
Bain Capital LLC has also submitted an offer for the assets and Blackstone Group LP and Prestige Brands Holdings Inc has put in a joint bid.
The pharmaceutical company is selling products including the Alli diet pill, Lactacyd soap, FiberChoice diet supplements and Nytol sleep aid.
The Chief Executive Officer Andrew Witty plans to keep brands like Sensodyne toothpaste and Panadol pain reliever as he expands Glaxo’s oral health, wellness and nutritition business in the consumer division.
The brands for sale are mainly available in the U.S. and Europe and accounts for about 500 million pounds or 10% of Glaxo’s revenue from consumer products in 2010, the news reports said.
The takeover of the assets of Glaxo will mark the second major deal for Thomas H Lee Partners, which brought food-marketing company Acosta Sales & Marketing in transaction valued at more than $2 billion in March.
Meanwhile, Glaxo also plans to return proceeds from a sale to shareholders through stock buy backs or another vehicle like special dividend.
Thomas H Lee Partners is a private equity company based in Boston and specializes in leveraged buyouts, growth capital, industry consolidations and recapitalizations.