Sector News

GSK seeks mid-Sept bids for $4 billion Indian Horlicks unit: sources

August 22, 2018
Life sciences

GlaxoSmithKline is seeking initial bids by mid-September for its India-focused Horlicks health nutrition business, which is expected to fetch more than $4 billion, two people familiar with the situation said on Tuesday.

The British drugmaker started a strategic review of Horlicks – a malt-based drink brand popular in India – and some smaller products, after buying Novartis out of their consumer healthcare venture for $13 billion in March.

Potential acquirers are likely to include major food and consumer products groups, such as Nestle, Pepsico and Reckitt Benckiser, the sources said.

The large Indian consumer business could also be of interest to other food and drink companies.

GSK, Nestle and Reckitt declined to comment, while officials at Pepsico were not immediately available. The timing of the bidding process was first reported by Bloomberg.

The main asset on the block in the sale is GSK’s 72.5 percent stake in its Indian subsidiary GlaxoSmithKline Consumer Healthcare, which is famous for Horlicks but also makes other products, including the chocolate-flavoured malt-based drink Boost.

Horlicks is more than 140 years old with origins dating back to 1873, when two British-born men, James and William Horlick, founded a company in Chicago to manufacture the drink. It was introduced to India by Indian soldiers who had fought with the British Army in the First World War.

Nestle, the world’s biggest packaged food company, has previously told GSK privately of its interest in Horlicks on several occasions, people familiar with the matter told Reuters earlier this year. Nestle already owns the malt drink Milo, but it is not a big seller in India.

GSK is being advised by Morgan Stanley and Greenhill.

By Ben Hirschler, Pamela Barbaglia and Martinne Geller

Source: Reuters

comments closed

Related News

December 3, 2022

Sanofi moves into swanky new Paris HQ designed around hybrid work and sustainability

Life sciences

Monday, the French pharma giant officially moved into its new global home base in Paris, dubbed La Maison Sanofi. The 9,000-square-meter (about 96,875-square-foot) facility comprises two historic buildings and will host around 500 employees, the company explained in a release.

December 3, 2022

As CEO Schultz eyes retirement, Teva taps former Sandoz head Francis as its next leader

Life sciences

On the first day of the new year, former Sandoz chief Richard Francis will take the reins from Schultz, who is hanging up his CEO hat to retire on Dec. 31, Teva said Monday. The news comes a little more than two weeks after Teva publicly said it was looking for Schultz’s replacement.

December 3, 2022

General Electric sets healthcare division spinoff plans

Life sciences

General Electric Co. set the terms for the spinoff of its healthcare division, putting an initial value of roughly $31 billion on the soon-to-be-public company. The Boston conglomerate plans to split into three separate public companies by early 2024. Following the healthcare spinoff, it plans to separate its aerospace business from its power and renewable-energy units.