(Bloomberg) -- Reckitt Benckiser Group Plc 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, 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 Inc., Carlyle Group Inc., KKR & Co. and Bain Capital were among those studying the business, which sells brands including Enfamil, Bloomberg News reported in April.

Reckitt shares fell 0.7% to 6,134 pence at 2:06 p.m. on Friday, giving the company a market value of £44 billion ($55 billion).

America is in the grip of a nationwide formula shortage that’s left some parents scrounging to feed their children. The supply-chain problems that had already reduced availability across the country were exacerbated earlier this year when Abbott Laboratories, the largest supplier of powdered baby formula, issued a voluntary recall and closed a plant after four infants fell ill. 

This week, a planeload of more than 70,000 pounds (32 metric tons) of formula arrived in the US as part of an emergency program to cut the shortfall. Meanwhile, the Federal Trade Commission has opened an inquiry into how industry mergers, federal regulations and contracts to help feed low-income women and children may have contributed to the problem.

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 could 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. A representative for CD&R declined to comment, while a spokesperson for Reckitt didn’t immediately provide comment. 

The consumer goods company has been reviewing its portfolio under Chief Executive Officer Laxman Narasimhan. A sale of the infant nutrition unit would complete a reversal of its largest-ever purchase: the $17 billion acquisition of Mead Johnson Nutrition Co. made five years ago under then-CEO Rakesh Kapoor. Narasimhan sold the Reckitt’s Chinese formula business to local buyout firm Primavera Capital last year, exiting one of its largest markets in the process.

Reckitt said at the time of the China disposal that its remaining operations in North America and other parts of the world had about £5.4 billion ($6.8 billion) of net assets. 

(Updates with shares in fourth paragraph.)

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