Private equity giant Blackstone Group and Prestige Brands Holdings have teamed up to jointly bid for healthcare major GlaxoSmithKline over-the-counter consumer drug business, according to reports on Monday. The business portfolio of nearly 20 brands is reportedly valued in a range of $2.3 billion to $3.1 billion. Blackstone and GlaxoSmithKline have declined to comment on the reports.

The company is also reportedly in receipt of another five to six bids for the portfolio in the second round of bidding, including from Germany's Stada Arzneimittel, private equity firm Bain Capital and other potential strategic buyers. However, it is not yet clear how many of them are bidding for the whole portfolio.

On April 14, U.K.-based GlaxoSmithKline had identified the product portfolio as non-core OTC brands, and announced its intention to divest it. The company said it could then focus its Consumer Healthcare business around a portfolio of fast-growing priority brands and the emerging markets. Goldman Sachs is said to be managing the divestiture process.

The company had initially indicated the divestiture while reporting financial results for the fourth quarter in early February. The healthcare giant then said it intends to divest mainly its European and American non-core OTC brands by late 2011 and use the proceeds to fund increased returns to shareholders.

The portfolio of OTC brands to be divested include, analgesics Solpadeine, BC and Goody's; vitamin and supplement product Abtei; feminine hygiene treatment Lactacyd; and alli for weight management.

The 20 brands in the portfolio to be divested generated sales of about £500 million in 2010, making up 10% of GlaxoSmithKline's total Consumer Healthcare business turnover.

Following the divestment, GlaxoSmithKline's Consumer Healthcare business will focus on three priority categories: Oral Health, Wellness/OTC and Nutrition, in which the company has fast-growing leading brands such as Sensodyne, Panadol and Horlicks.

Irvington, New York-based Prestige Brands, together with its subsidiaries, engages in marketing, selling, and distributing over-the-counter healthcare and household cleaning products to retail outlets in the U.S., Canada, and certain international markets.

Prestige Brands is looking to build its product portfolio of over-the-counter drugs with the proposed acquisition, while Blackstone would reportedly be financing a major part of the acquisition for a stake in Prestige Brands.