Reckitt has agreed to sell its Essential Homecare division to private equity firm Advent International in a deal worth $4.8bn (£3.6bn).
The deal sees Advent take a majority stake in a portfolio that includes brands such as Air Wick, Woolite, Calgon, and Cillit Bang, while Reckitt retains a 30% equity shareholding. The transaction is expected to complete in the second half of 2025, subject to regulatory approvals.
The sell-off moves Reckitt towards becoming a simpler, more effective consumer health and hygiene company, enabling it to focus on a core portfolio of high-growth, high-margin Powerbrands, which feature Dettol, Durex, Vanish and Lysol.
“We are executing our strategic plan at pace,” said Kris Licht, Reckitt Chief Executive Officer. “The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business.”
He added: “Essential Home will benefit from Advent’s new majority ownership, with our retained minority stake in Essential Home providing a potential long-term value enhancement opportunity for Reckitt.”
The sale follows pressure from investors to drive efficiency and improve margins amid intense global cost pressures.
Advent described the acquisition as a platform for growth. Ranjan Sen, Managing Partner at Advent, said: “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.”
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