Yellow Wood Partners, a private equity firm based in Boston, USA, has announced that its portfolio company Suave Brands has signed a binding offer to acquire the lip balm brand ChapStick from Haleon, a consumer healthcare firm, for €468 million ($519.6 million).
ChapStick lip balm first debuted in the 1880s and later diversified its product range with innovative new ingredients, skincare benefits, and flavours, Yellow Wood Partners said in a statement. The brand generated revenue of £112 million ($135.82 million) for the fiscal year ended 31st December 2023.
Commenting on the news, Haleon chief executive officer Brian McNamara commented: “While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon. Selling the brand allows us to simplify our business and pay down debt more quickly. We’re confident the brand will continue to thrive under its new ownership”.
Daniel Alter, chief executive officer Suave Brands Company said: “The Yellow Wood team established Suave Brands Company in May 2023 to acquire the Suave brand from Unilever […] At Suave Brands Company, our management team is focused on building a platform of category leading brands that consumers love while working with our retail customers and manufacturing partners to grow the brands. We look forward to continuing to build Suave Brands Company by identifying additional personal care brands to add to the portfolio”.
The deal is expected to be completed in Q2 2024, subject to customary closing conditions.
Source: Yellow Wood Partners (via PRNewswire) / Haleon