Reckitt has launched early discussions with potential suitors for a sale of its home care assets, which could be worth over £6 billion (€7.1 billion), Bloomberg News has reported.
In July, the British consumer goods giant said it was considering options for its nutrition business and looking to offload a portfolio of home care brands by the end of 2025.
Looking At Options
Reckitt is working with Morgan Stanley on options for its home care brands, which includes household names such as Air Wick air fresheners and Cillit Bang cleaners, while Goldman Sachs Group is helping on evaluating options for its formula brand Mead Johnson, the report said, citing people familiar with the matter.
The London-listed company did not respond to a Reuters request for comment.
Reshaping Reckitt
In July, Reckitt announced that it intends to 'reshape the company as a world-class consumer health and hygiene organisation', by transitioning to a simpler, more effective organisational structure.
As part of this process, Reckitt intends to concentrate on its high-growth, high-margin 'Powerbrands', which boast significant potential for expansion, it noted.
It also said that it intends to divest its non-core home care brands, known as 'Essential Home', which include Air Wick, Mortein, Calgon, and Cillit Bang. These brands generated £1.9 billion (€2.25 billion) in revenue in full-year 2023, and Reckitt plans to exit this category by 2025.
Additionally, the Mead Johnson Nutrition business, which includes the Enfamil and Nutramigen brands, is also considered non-core by the business, and Reckitt said that it will explore strategic options for its future.
Additional reporting by ESM
