GlaxoSmithKline plans to spin off its consumer healthcare business by the middle of 2022.
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GlaxoSmithKline stock jumped early on Tuesday on reports that the pharmaceutical giant’s consumer unit is attracting interest from a number of private-equity firms.
The London-listed drugmaker is working to spinoff its consumer healthcare business—a joint venture with Pfizer (ticker:PFE)—and is preparing for a separate listing.
The company’s advisors have been fielding interest in the unit, with Advent International, Blackstone , Carlyle Group , CVC Capital Partners and KKR & Co , among those evaluating the business, Bloomberg reported, citing people with knowledge of the matter. It could also attract the world’s largest pharma and consumer-goods companies, those people added, noting that any potential deal could value the business at £40 billion ($54 billion).
Glaxo stock (GSK.London) was close to 3% higher in late morning London trading, while the company’s American depositary receipts (GSK) were 3.1% higher in premarket trading in New York.
Earlier this year, Glaxo said the demerger was on track to be completed by mid-2022. The split would see the consumer unit, which includes Sensodyne toothpaste, Centrum vitamins and Advil painkillers among its brands, become an independent business with separate headquarters. The existing company will receive a dividend of up to £8 billion from the separation and will continue to focus on pharmaceuticals and vaccines.
Write to Callum Keown at [email protected]
