Reckitt Benckiser Group Plc is struggling with the sale of its infant nutrition unit, with only a small number of private equity funds following through with bids, people familiar with the matter said.
Clayton Dubilier & Rice is one of the few buyout firms that submitted a non-binding bid for the asset, the people said, asking not to be identified discussing confidential information. London-listed Reckitt asked for offers for the business, which could fetch about $7 billion, by late May.
Potential suitors have been spooked by the ongoing infant formula crisis in the US, the Reckitt unit’s largest market, according to the people. Blackstone Inc., Carlyle Group Inc., KKR & Co. and Bain Capital were among those studying the business, which sells brands including Enfamil, Bloomberg News reported in April.
Reckitt shares fell 0.7% to 6,134 pence at 2:06 p.m. on Friday, giving the company a market value of £44 billion ($55 billion).
Read more: BNN Bloomberg
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