A consortium led by Warburg Pincus and KKR & Co. is in advanced discussions to acquire German packaging firm Gerresheimer AG, positioning itself as the frontrunner after Bain Capital and other bidders exited the race, sources familiar with the matter said.

Gerresheimer, a key supplier of packaging solutions for pharmaceuticals and cosmetics, has long been a target for private equity buyout firms. The company’s market value stands at approximately €2.7bn ($2.9bn), with shares rising 11% this year. However, the Warburg Pincus-KKR consortium is reportedly not planning to offer a significant premium to its current valuation. While negotiations are progressing, a final agreement may take weeks, and the deal could still fall apart.

Düsseldorf-based Gerresheimer has been considering strategic options for its molded glass business since last year, attracting significant private equity interest. The company confirmed in February that it had received informal, non-binding expressions of interest from investors.

Gerresheimer’s diversified business model—spanning cosmetics packaging and complex drug delivery solutions such as syringes, injectors, and inhalers—has made it a potential breakup candidate. However, recent setbacks in Novo Nordisk’s next-generation weight-loss drug CagriSema reportedly dampened interest from some suitors.

Activist investors have also been circling Gerresheimer, with Ricky Sandler’s Eminence Capital holding a 5.4% stake and Sachem Head Capital Management recently disclosing a position exceeding 5%.