Reckitt struggling with sale of infant nutrition business – report

Reckitt Benckiser is reportedly struggling with the sale of its infant nutrition unit, with only a small number of private equity funds following through with bids.
Bloomberg cited people familiar with the matter as saying that Clayton Dubilier & Rice is one of the few buyout firms that submitted a non-binding bid for the asset.

Potential suitors were understood to have been spooked by the ongoing infant formula crisis in the US, which is the unit’s largest market. Blackstone, Carlyle, KKR and Bain Capital were reportedly among those studying the business, which sells brands including Enfamil,.

Bloomberg said some private equity firms are waiting to see how the situation in the US develops before deciding whether to proceed with offers for Reckitt’s infant nutrition business. They could still submit offers for the unit once there’s more clarity.

Sources said the timeline of the potential sale was fluid, and other strategic and private equity bidders could still emerge.

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