- Homecare brands on the block
- Airwick and Cillit Bang no longer core
- Sale could raise around £6 billion
Consumer and household goods group Reckitt Benckiser (RKT) is pushing ahead with the sale of its homecare brands according to press reports.
The news was applauded by shareholders, with the shares gaining as much as 150p or 3% to a three-month high of £47.60 in early trading.
SIX BILLION POUND DEAL
The FTSE 100 firm, whose shares have been in the doldrums since March, has begun early talks with potential buyers of its homecare assets – including brands such as Airwick air fresheners and Cillit Bang cleaners – in a deal worth around $8 billion (£6 billion), Bloomberg reports.
After announcing its plans in July, the company is believed to be working with US broker Morgan Stanley (MS:NYSE) on the sale, with interest coming from mostly from financial investors as well as some consumer groups, according to people familiar with the deal.
At the same time, Reckitt has retained Goldman Sachs (GS:NYSE) to help evaluate options for its Mead Johnson infant nutrition business including a potential sale of the unit.
However, spinning off Mead Johnson – which Reckitt bought in 2017 for a whopping $17 billion – will not be without complications as the business is embroiled in legal cases in the US over the safety of its products.
Reckitt chief executive Kris Licht has said from now on he wants the group to focus on ‘power brands’ such as its Gaviscon heartburn treatment, Durex condoms and Mucinex cold remedy, as well as disinfectants like Dettol, Harpic, Lysol and Vanish, sales of which boomed during the pandemic.
