The Reckitt Benckiser (LON: RKT) share price rallied by more than 2% in early trading on Friday after the consumer goods group announced the sale of its Essential Home business to private equity firm Advent International for up to $4.8 billion.
Year-to-date, the stock is up around 5%.
The deal includes a 30% retained stake by Reckitt and is expected to be completed by the end of this year.
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The transaction marks a key milestone in Reckitt’s strategy to streamline its portfolio and focus on high-margin consumer health and hygiene brands.
Chief Executive Kris Licht said, “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.”
Reckitt plans to return approximately $2.2 billion to shareholders through a special dividend and share consolidation, in addition to its ongoing share buyback programme.
The company will also announce a new tranche of buybacks alongside its first-half results on 24 July.
Essential Home generated roughly £2 billion in net revenue in 2024, around 14% of Reckitt’s total, and includes brands such as Air Wick, Calgon, Woolite and Cillit Bang.
Advent said the deal offers a “unique opportunity to create a focused, scaled platform of globally recognised home care brands,” with plans to drive operational excellence and long-term growth.
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