Reckitt sells majority stake in Air Wick and Cillit Bang arm
Reckitt Benckiser has agreed to sell its Essential Home business to private equity investor Advent International for $4.8bn (£3.6bn).
Essential Home includes the brands Air Wick, Calgon, Woolite and Cillit Bang.
The FTSE 100 giant, which will retain a 30 per cent equity stake in the business, has been reshaping its business to focus on “11 high-growth, high-margin Powerbrands” as part of a simplification drive.
Kris Licht, Reckitt chief executive, said the company was “executing [its] strategic plan at pace”.
“The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business.
“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 Powerbrands.”
Licht added that Essential Home will “benefit from Advent’s new majority ownership” with Reckitt’s retained minority stake in Essential Home a “potential long-term value enhancement opportunity”.
Essential Home operates across the air care, surface, pest and laundry segments and generated £2bn of net revenue in 2024, 14 per cent of Reckitt’s total net revenue.
Adjusted operating profit in the division was £490m in 2024.
Ranjan Sen, Managing Partner at Advent, said: “We are delighted to partner with Reckitt and the Essential Home management team. 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.
“We are confident we can build on the portfolio’s strong foundations to drive operational excellence and unlock the brands’ full potential. We look forward to working closely with Reckitt and the Essential Home leadership team on this exciting journey.”
The deal is expected to complete by December 31 following consultations and regulatory approvals.