PE firms may acquire vitamin maker NBTY for $3 bn: report

Private-equity firms--Blackstone Group LP and Carlyle Group--are in talks to acquire vitamin and nutritional supplements maker NBTY Inc in a deal that could top $3 billion, says a media report.

The deal would be among the largest transactions to take a public company private since the credit bubble burst.

Attributing to people familiar with the matter, The Wall Street Journal reported that Blackstone Group LP and Carlyle Group are in the hunt for NBTY.

However, it's unclear whether other firms are in talks with NBTY or whether Blackstone and Carlyle will ultimately team up on a deal.

According to the publication, the exact value of the transaction could not be learnt, but based on NBTY's recent share price and premiums paid in other deals lately, it could come in at well over $3 billion.

A deal could be announced in the coming weeks, the report said.

With NBTY's market capitalisation at $2.4 billion, a deal for the company would be one of the largest leveraged buyouts in the past two years. NBTY has roughly $450 million in debt, the report noted.

NBTY employs 14,000 and had 2009 revenue of $2.6 billion. About 60 per cent of the company's revenue comes from sales of its products to retailers such as Wal-Mart Inc. NBTY also operates retail stores in several continents, including about 440 Vitamin World stores in the US, it added.