KPS Capital Partners has opted out of talks with Warburg Pincus over a potential joint bid to acquire Gerresheimer AG, the German specialist in pharmaceutical and cosmetics packaging, according to a report by Bloomberg citing unnamed sources close to the discussions.
After completing due diligence alongside Warburg Pincus, KPS determined it would not pursue a joint offer, leaving Warburg to consider whether to proceed alone.
The collapse of the proposed alliance casts fresh uncertainty over the process for Gerresheimer, whose shares plunged as much as 8% on the news, extending a year-to-date decline of over 33% to a market value near €1.5bn. The stock has been under pressure since early June, when Gerresheimer cut its outlook and suspended its dividend.
Warburg Pincus had been in earlier talks with KPS on a possible per-share offer in the “€70s,” targeting especially the company’s higher-margin moulded glass operations. Before engaging KPS, Warburg had briefly explored teaming with KKR, but those discussions fell through in April.
Gerresheimer, based in Düsseldorf, is widely viewed as a potential breakup candidate given the distinct nature of its two divisions: a cosmetics business producing glass jars and plastic bottles for luxury brands, and a pharmaceutical arm supplying complex delivery systems such as vials, syringes, inhalers, and injectors.
The company has been reviewing strategic options for its moulded glass unit since last year.
