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Reckitt Benckiser, the household care and homecare giant, has announced it has agreed to sell a majority stake in its Essential Home business to private equity investor Advent International in a deal worth up to $4.8 billion.
The Essential Home portfolio includes air freshener brand Air Wick, water softener brand Calgon, laundry care brand Woolite, and detergent brands Cillit Bang and Easy-Off in more than 70 markets. The deal also includes six manufacturing sites in Mexico, Hungary, the UK, Spain, Portugal, and Argentina, plus partial ownership of insecticide brand Mortein in key regions.
Commenting on the deal, Reckitt chief executive officer Kris Licht commented: “We are executing our strategic plan at pace. The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business”.
“This moves Reckitt towards becoming a simpler, more effective world-class consumer health and hygiene company and it will enable us to focus on a core portfolio of high-growth, high-margin Powerbrands”, he added. “Essential Home will benefit from Advent’s new majority ownership with our retained minority stake in Essential Home providing a potential long-term value enhancement opportunity for Reckitt.”
Reckitt said it would retain an interest in Essential Home through a 30% equity stake in Advent’s acquisition vehicle.
Source: Reckitt
