Reckitt Benckiser is struggling with the sale of its infant nutrition unit, with only a small number of private equity funds following through with bids, people familiar with the matter said.

Clayton Dubilier & Rice is one of the few buyout firms that submitted a non-binding bid for the asset, the people said, asking not to be identified discussing confidential information. London-listed Reckitt asked for offers for the business, which could fetch about $7 billion (€6.5bn), by late May.

Potential suitors have been spooked by the ongoing infant formula crisis in the US, the Reckitt unit’s largest market, according to the people. Blackstone, Carlyle Group, KKR and Bain Capital were among those studying the business, which sells brands including Enfamil, Bloomberg News reported in April.

Reckitt shares fell 1.5% to 6,088 pence at 3:48pm on Friday, giving the company a market value of about $55 billion.

The United States is in the grip of a nationwide formula shortage that has left some parents scrounging to feed their children. Some private equity firms are waiting to see how the situation in the US develops before deciding whether to proceed with offers for Reckitt’s infant nutrition unit, according to the people. They may still submit offers for the business once there’s more clarity, the people said.

The timeline of the potential sale is fluid, and other strategic and private equity bidders could still emerge, the people said.

Reckitt has been keeping its factories open all hours in a bid to meet the increased demand for formula in the US. The British consumer goods company, which boosted formula production by 30 per cent, told Reuters last week it now accounted for more than 50 per cent of total baby formula supply in United States, up from around a third before the crisis. – Bloomberg/Reuters