The firm's owner, North Castle Partners, is asking for between $650 - $750 million for the company, whose leading brands include 'Your Life' supplements, sources told the paper.
Merrill Lynch and Credit Suisse First Boston have been hired to manage the sale. Potential buyers cited by the paper include Texas Pacific Group, Bain Capital and Ripplewood Holdings.
Neither Leiner nor North Castle confirmed the report.
Leiner claims to have a 43 per cent mass market share of the private label vitamins, minerals and supplements market and it has also become the nation's second-largest supplier of private label OTC drugs. The company was the first investment made by North Castle Partners, founded in 1997 to take control of the vitamin maker.
In February 2002, Leiner filed for Chapter 11 bankruptcy protection after a string of losses culminating in a negative result of $11.1 million for the final quarter of 2001. After an overwhelming vote for reorganisation of the firm, North Castle agreed to lead a $20 million investment in the prepackaged bankruptcy plan and the company emerged from banruptcy after 42 days.