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Reckitt Benckiser has struck a deal valued at up to $4.8 billion (£3.6 billion) to sell a majority share of its household cleaning division, which includes brands like Cillit Bang and Calgon.

The transaction will see private equity firm Advent International acquire a 70% stake in Reckitt’s essential home products business. This division also encompasses well-known brands such as Air Wick, Woolite, Resolve, Sole, and Easy-Off, along with about 75 other brands across more than 70 countries.

Reckitt will retain a 30% minority interest in the business post-sale, with $1.3 billion (£968 million) of the deal value deferred. As part of the agreement, six manufacturing sites — including one in Derby — will transfer to Advent.

The company expects to incur approximately $800 million (£596 million) in one-time costs related to separating the home care unit from its broader operations. Completion of the deal is anticipated by the end of 2025.

Chief Executive Kris Licht called the move a “significant step forward” in executing Reckitt’s strategic transformation.

“The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business,” Licht said. “It will allow Reckitt to become a simpler, more focused consumer health and hygiene company, concentrating on a core group of high-growth, high-margin brands.”

The essential home division, which generated around £2 billion in net revenue in 2024 and £486 million in earnings (EBITDA) over the 12 months to March, was put up for sale in mid-2024 as part of a broader restructuring strategy. This plan also includes the potential spin-off of Reckitt’s baby formula arm, Mead Johnson.

Following the sale, Reckitt plans to distribute a special dividend of $2.2 billion (£1.6 billion) to shareholders. The company also intends to reduce internal costs to offset the expenses of the separation.

Reckitt’s share price rose by 2% in Friday morning trading following the announcement.

Advent’s Managing Partner Ranjan Sen said the deal offers a rare chance to scale globally trusted cleaning brands.

“This carve-out presents a unique opportunity to create a focused, scaled platform of globally recognised home care brands. We’re confident we can build on the strong foundation and drive operational excellence to unlock their full potential,” he said. Photo by Graham Hardy, Wikimedia commons.