24th Dec 2021 07:57
(Alliance News) - Reckitt Benckiser Group PLC on Friday said it has agreed to sell its E45 skincare brand.
The Slough, England-based consumer goods company stated that it is selling the skincare brand to Stockholm-based Karo Pharma AB for an implied enterprise value of GBP200 million.
In 2020, E45 and its sub-brands generated a combined net revenue of GBP43 million.
If completed, the sale will be another step in Reckitt's plan to manage its portfolio for higher growth, after the recent sale of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.
"As we shift from a brand-led to a category-led growth strategy, we are focusing on high growth categories with brands we can stretch into new places and spaces to support our medium-term growth ambitions, including 4-6% growth in Health," Chief Executive Laxman Narasimhan said.
He added: "Now is the right time to pass E45 on to a new owner, and we are confident that Karo will build on the strength of the E45 brand to capture the significant opportunities ahead."
Reckitt noted that the sale is still subject to the satisfaction of customary closing conditions, including consultation with employee representatives in France. The sale of E45 is expected close to in the second quarter of 2022.
By Abby Amoakuh; [email protected]
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