A group comprising private equity companies Warburg Pincus and KKR is reportedly in discussions to acquire Gerresheimer, a German company specialising in packaging for medicines and beauty products.
The companies became the leading contenders after joining forces, with other possible bidders such as Bain Capital withdrawing from the process, Bloomberg News reported, citing people familiar with the matter.
However, sources said that the Warburg Pincus-KKR consortium is unlikely to offer a large premium over Gerresheimer’s current price, with key hurdles still remaining for a deal.
Although the talks are progressing, a final agreement may take weeks, and the deal could still collapse, sources added.
Gerresheimer, based in Düsseldorf, has already drawn interest from several private equity companies, according to the news agency.
Last month, Gerresheimer enlisted advisors to gauge the interest of prospective buyers, with Warburg Pincus, EQT, and KKR indicating early interest.
Gerresheimer was seen as an attractive acquisition target due to its operations in two key sectors.
Its cosmetics division makes plastic bottles and glass jars for perfumes and skincare while its pharma unit produces specialised packaging such as syringes, vials, injectors, inhalers, and wearable infusion devices.
Since last year, the German company is said to have been exploring strategic options for its moulded glass business.
Last December, Gerresheimer announced an investment of €100m ($108.80m) in its Skopje facility in North Macedonia.
The investment would see the addition of a syringe production hall at the facility, which produces plastic systems for the pharmaceutical industry.
