The unit could fetch about $3 billion, these people say. An acquisition of the P&G business would substantially boost the profile of Warner Chilcott, a New Jersey-based company that focuses on women's health care and dermatology products. Folding in the division would triple Warner's revenue and give it access to drugs that focus on a wide range of women's health concerns. Warner Chilcott didn't return calls seeking comment. Cerberus, which proposes acquiring the divisi
on and turning it into a stand-alone company, is more circumspect about the transaction, according to people familiar with the situation. But it has lined up preliminary financing from some Wall Street banks, a small sign that banks are getting comfortable financing acquisitions, albeit ones with low amounts of debt financing and very steady cash flows. "Cerberus can't get it if the strategic buyers are serious. They will pay more than Cerberus for it," said one person familiar with the situation. The unit -- which makes roughly $800 million in operating profit -- was put on the auction block late last year, in a sales process led by Goldman Sachs & Co. A deal could be wrapped up by the end of summer, according to people familiar with the discussions, though they warned final discussions could still falter. A P&G spokesman said the company will look at all options to maximize shareholder value, including "continued operations of our strong and profitable business, as well as divestiture of some or all of our pharmaceutical assets." The division produces osteoporosis drug Actonel, bladder-control drug Enablex, ulcerative colitis drug Asacol and female sexual-dysfunction drug Intrinsa, which hasn't gained approval in the U.S. but is available in some European countries. P&G will likely focus on one bidder sometime next month, say people with knowledge of the process.
on and turning it into a stand-alone company, is more circumspect about the transaction, according to people familiar with the situation. But it has lined up preliminary financing from some Wall Street banks, a small sign that banks are getting comfortable financing acquisitions, albeit ones with low amounts of debt financing and very steady cash flows. "Cerberus can't get it if the strategic buyers are serious. They will pay more than Cerberus for it," said one person familiar with the situation. The unit -- which makes roughly $800 million in operating profit -- was put on the auction block late last year, in a sales process led by Goldman Sachs & Co. A deal could be wrapped up by the end of summer, according to people familiar with the discussions, though they warned final discussions could still falter. A P&G spokesman said the company will look at all options to maximize shareholder value, including "continued operations of our strong and profitable business, as well as divestiture of some or all of our pharmaceutical assets." The division produces osteoporosis drug Actonel, bladder-control drug Enablex, ulcerative colitis drug Asacol and female sexual-dysfunction drug Intrinsa, which hasn't gained approval in the U.S. but is available in some European countries. P&G will likely focus on one bidder sometime next month, say people with knowledge of the process.For further details visit as : http://online.wsj.com/article/SB124821771844870125.html?mod=googlenews_wsj
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