(Bloomberg) -- EQT AB is considering a potential sale of Karo Healthcare in a deal that could value the Swedish consumer-health business at more than €2 billion ($2.1 billion), according to people familiar with the matter.

The private equity firm is working with Jefferies Financial Group Inc. as it weighs strategic options for the business it acquired in 2019, said the people, asking not to be identified as the matter is private. Karo Healthcare could draw interest from other financial sponsors who are keen to expand in the sector, the people said.

Deliberations are in the early stages and no final agreement on a sale has been reached, while EQT could also decide to retain the business if there are no viable offers, the people said. 

Representatives for EQT and Jefferies declined to comment.

The consumer-health sector is attractive to buyout firms because it offers steady cash flows and resilience even during economic downturns. Advent International and Blackstone Inc. are among suitors that have been circling the consumer health unit of Sanofi, in a deal that could value the business at about $20 billion, Bloomberg News reported in February. In 2021, CVC Capital Partners bought Cooper Consumer Health in a deal valuing it at about €2.2 billion.

A deal would also come as healthcare transactions show signs of a revival after a slow start to the year. KKR & Co. and TPG Inc. are among suitors to have expressed initial interest in $11 billion Italian drugmaker Recordati SpA, Bloomberg News reported on Monday.

Stockholm-based Karo Healthcare has around 400 employees and its products are sold in more than 90 countries, according to its website. The company owns the E45 dermatology brand and also sells products for coughs and colds as well as vitamins.

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