U.S. scientific instruments maker Thermo Fisher Scientific Inc and South Korea's Celltrion Inc are among those competing to acquire the biopharma solutions business of medical device maker Baxter International Inc, according to people familiar with the matter.
The sources said that the deal could help Baxter pay down debt after the acquisition of Hill-Rom Holdings in 2021, which could lead to the sale of more than $4 billion. The total debt of Baxter, which has a market value of $19 billion, was $16.6 billion at the end of December.
Sources said that private equity firms, including KKR Co and Carlyle Group, have expressed interest in the Baxter business. They added that other bidders could still emerge.
The sources requested anonymity because the matter was confidential. Baxter, Thermo Fisher and KKR didn't want to say anything. Celltrion and Carlyle didn't respond immediately to requests for comment.
In January, Baxter said it was exploring alternatives for its biopharma solutions business and would spin off its kidney care units.
The Deerfield, Illinois-based company focuses on areas such as critical care, surgical products, nutrition and pharmaceutical equipment.
Baxter's biopharma solutions unit supports drugmakers in the formulation, development, and commercialization of drugs typically given by infusion or injection, such as biologics and vaccines.
In recent years, Thermo Fisher, one of the world's largest suppliers of scientific equipment, has been making acquisitions in order to expand its offerings in contract research and manufacturing, including a $5.2 billion purchase of Patheon NV in 2017 and a $17.4 billion takeover of PPD Inc in 2021.
Celltrion, whose co-founder and chairman, Seo Jung-jin, is South Korea's richest person according to Forbes, is a biopharmaceutical company with a contract research and manufacturing arm.