Consumer goods company Reckitt has sold a 70 per cent stake in its Essential Home portfolio to private equity investor Advent in a deal valued at US$4.8 billion.
Essential Home’s portfolio includes Air Wick, Calgon, Woolite, Cillit Bang, Resolve, Sole and Easy-Off, as well as around 75 other brands across over 70 markets. Last year, the business generated approximately $2.6 billion of net revenue, about 14 per cent of Reckitt’s total revenue.
The transaction value includes up to $1.3 billion of contingent and deferred consideration. Reckitt, which holds the remaining 30 per cent stake, will continue to support Essential Home following the deal.
“The divestment represents a significant step forward in unlocking the substantial value in our business,” said Reckitt CEO Kris Licht.
“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 power brands.”
Under the new ownership, Essential Home will operate as a standalone business. Advent plans to prioritise investment in brand equity, new product development and marketing to elevate the consumer experience and strengthen partnerships with retailers.
“The carve-out represents a unique opportunity to create a focused, scaled platform of globally recognised home care brands that operate in attractive categories with structural growth tailwinds,” added Ranjan Sen, managing partner of Advent.
The transaction is expected to close by the end of this year, subject to customary closing conditions and regulatory approvals.
