Teva Women's Health Unit Attracts Interest of Church & Dwight, CooperBy
U.S. companies are weighing bids for part of the portfolio
Israeli drugmaker selling assets to pare $35 billion in debt
Teva Pharmaceutical Industries Ltd.’s women’s health unit is drawing interest from Church & Dwight Co. and Cooper Cos., people familiar with the matter said, as the troubled Israeli drugmaker sells assets to pare debt.
Teva may sell the business as a whole or split the U.S. and European operations after bidders showed interest in separate parts, the people said, asking not to be identified because the deliberations are private. Church & Dwight and Cooper are considering bids for the U.S. treatments, the people said. The deadline for final bids is as soon as this week and the entire portfolio may fetch about $2 billion, they said.
The women’s health business is one of several Teva’s trying to offload after an ill-timed acquisition of Allergan Plc’s generics division left it with about $35 billion in debt. The generic drugmaker has been forced to cut its dividend and earnings goals this year and has warned investors that it may breach debt covenants if cash flow weakens. Teva is considering disposals of its European oncology and pain treatments as well as its Medis unit. It may also sell some respiratory products, people familiar with the matter had said.
Other potential bidders for women’s health include India’s Intas Pharmaceuticals Ltd. and French buyout firm Astorg Partners, which could use the business to expand its portfolio firm HRA Pharma, the people said. Teva’s portfolio has attracted interest from a number of bidders in the industry as well as private equity firms, they said. France’s Pierre Fabre SA, CVC Capital Partners and Apollo Global Management LLC are also among potential bidders, people familiar with the plans said previously.
No final decision has been made and the companies could still decide against a bid, the people said. Representatives for Teva and Church & Dwight declined to comment. A spokesman for Cooper, which would make the acquisition through its surgical division, didn’t have an immediate comment. Representatives for Intas and Astorg didn’t respond to calls.
Teva fell 0.5 percent in Tel Aviv trading on Tuesday. The shares have dropped 56 percent this year.
— With assistance by P R Sanjai