4th Jul 2023 10:18
(Alliance News) - Haleon PLC is exploring a potential divestment of some smoking cessation products, including the Nicotinell brand of nicotine gum, patches and lozenges, according to a Bloomberg report on Tuesday.
Citing people familiar with the matter, Bloomberg said the Weybridge, Surrey-based consumer healthcare products company is working with an adviser to identify potential suitors for the Nicotinell brand.
Bloomberg sources said the business is attracting interest from both investment firms and consumer companies and could be worth up to USD800 million in a sale, as Haleon reportedly seeks to offload non-core businesses.
Deliberations are ongoing and no final decisions on a sale have been made, Bloomberg sources said. A representative for Haleon declined to comment.
https://www.bloomberg.com/news/articles/2023-07-03/advil-owner-haleon-said-to-mull-sale-of-nicotine-gum-business
Shares in Haleon, which was spun off from GSK PLC last year, were marginally up to 320.90 pence each in London on Tuesday morning. It has a market capitalisation of GBP29.60 billion.
Under Chief Executive Officer Brian McNamara, Bloomberg said Haleon has been looking to streamline its portfolio and focus on core products.
The company was also exploring divesting of its ChapStick lip balm brand, which could fetch about USD600 million, according to a Bloomberg report in February.
In mid-May, GSK sold 240 million shares in Haleon at 335p each, netting GBP804 million in total. GSK said it and New York-based pharmaceutical maker Pfizer Inc, which owns 32% of Haleon, will not sell any more shares in the consumer healthcare firm for another 60 days.
Shares in GSK ticked up 0.2% to 1,389.85p each in London on Tuesday morning, while in New York, Pfizer shares ticked down 0.2% to USD36.59 in after-hours trading. On Monday, they closed down 0.1% to USD36.65.
By Greg Rosenvinge, Alliance News reporter
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