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PE firms mull joint offer for Life Technologies

6 Mar 2013

sale5_lrgA group of private equity firms including Blackstone are reportedly mulling a joint bid for biotech tools group Life Technologies, which currently has a market value of over $10bn.

A report by Reuters, which cited two people familiar with the matter, said a consortium including Blackstone, Carlyle Group, TPG Capital and Singapore’s state-owner firm Temasek Holdings was in preliminary talks over a potential bid.

The sources added that it was unclear whether the companies will proceed with an offer and it would be tough to make the economics of a deal attractive given the current market valuation of the company.

Life Tech is currently conducting a strategic review and has previously said that it would consider all options including a sale.

A fortnight ago it was reported that the offers that had been made for the company fell short of its expectations.

Reuters said the initial offers from Blackstone, KKR, Bain and TPG valued the business close to its then-market cap of nearly $11bn.

In order to secure the approval of Life’s board, the bids had to be increased significantly, the report said, adding that rival buyers could still emerge.

Expectations of a takeover have driven the company’s share price up 30 per cent since mid-January, when it revealed that it had hired investment banks Deutsche Bank Securities and Moelis & Company to assist in its annual strategic review.

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