18th Sep 2024 08:14
(Alliance News) - Reckitt Benckiser Group PLC has started early discussions with some of the potential suitors for its homecare assets, which could fetch more than GBP6 billion, Bloomberg reported, citing people familiar with the matter.
The Slough-based consumer goods firm is working with Morgan Stanley for the brands including air freshener Airwick and Cillit Bang cleaners, the report said.
Mostly financial investors as well as some consumer companies have shown interest in the assets, Bloomberg said, with a formal sale process likely to kick off within months and be completed in 2025.
Meanwhile, Goldman Sachs Group Inc is helping Reckitt on evaluating options for its infant formula brand Mead Johnson, including a potential sale, according to the report. Deliberations are ongoing and no final decision has been made.
https://www.bloomberg.com/news/articles/2024-09-17/reckitt-said-to-start-talks-on-6-billion-homecare-assets-sale
In July, Reckitt announced plans to streamline and reshape the business creating an organisation, "with one of the strongest growth and margin profiles among its peer group".
Reckitt plans to focus on a portfolio of 'powerbrands', which it defined as high-growth, high-margin businesses that it thinks have the potential for long-term growth.
These include Mucinex, Strepsils, Gaviscon, Nurofen, Lysol, Dettol, Harpic, Finish, Vanish, Durex and Veet.
The company plans to sell non-core home care brands including Air Wick, Mortein, Calgon and Cillit Bang, which delivered 2023 net revenue of GBP1.9 billion. Reckitt aims to complete the disposals by the end of 2025.
In addition, Reckiit said it considers Mead Johnson Nutrition, the business behind Enfamil infant nutrition, and currently the subject of ongoing US litigation, to be non-core.
Reckitt said it will consider "all strategic options" for that division.
Shares in Reckitt Benckiser rose 1.9% to 4,698.56 pence each in London on Wednesday morning.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.