US pharmaceuticals giant Pfizer is expected to announce it is putting its Adams candy unit on the market in the next few days.
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According to Reuters, Pfizers is selling both Adams and the Schick shaving business to focus more closely on its cores operations. The two units together are expected to attract bids worth as much as US$7bn. It is not yet known which investment banks will be appointed to handle the sales, but Reuters’s sources say Morgan Stanley is tipped to run the Schick sale.
Two banks are likely to be hired to manage the Adams auction from a pool of three still jostling for the assignment, including Merrill Lynch, Goldman Sachs and Lazard, the sources said.
Adams, which makes a range of sugar confectionery including Certs mints and Trident gum, was acquired when Pfizer bought Warner-Lambert two years ago. It could sell for between US$4bn and US$5bn.
Potential bidders include Switzerland’s Nestlé, Cadbury Schweppes of the UK, and the USA’s Hershey and Kraft, with Nestlé considered the strongest candidate, as it could probably generate the most cost synergies from the deal.
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By GlobalDataAccording to Reuters, Cadbury could also put in a serious bid for Adams, as the UK group is known to be keen to rebalance its portfolio by enhancing its confectionery activities.
