Warburg Pincus and KKR in talks to acquire German packaging firm Gerresheimer AG - Bloomberg

Investing.com -- A consortium made up of Warburg Pincus and KKR & Co (NYSE:KKR). is reportedly in discussions to acquire Gerresheimer AG (BS:GXId), a German company that manufactures packaging for drugs and cosmetics, according to a report from Bloomberg, citing sources.

These private equity companies emerged as the leading contenders after joining forces and outlasting other potential bidders, such as Bain Capital. The shares of Gerresheimer have seen a growth of approximately 12% this year, which has resulted in the company’s market value reaching around €2.74 billion ($3 billion).

The consortium of Warburg Pincus and KKR is not expected to offer a substantial premium on Gerresheimer’s current price. There are still significant obstacles to finalizing the deal, according to sources familiar with the situation. While the negotiations are in an advanced stage, the final agreement could take weeks, and there’s a possibility that the deal might not materialize.

Officials from Gerresheimer, Warburg Pincus, KKR, and Bain have declined to comment on the matter.

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