Reckitt Benckiser Group It sells its important home business to global private equity firm Advent International for a $4.8 billion deal. As part of the agreement, Reckitt holds a 30% stake in the business.
The deal includes around 80 brands sold in 70 markets, including Air Wick, Calgon, Woolite, Cillit Bang, Resolve, Sole and Easy Off.
Reckitt’s Business Strategy
The transaction is part of Overhaul Strategy Reckitt was implemented last July and focused on a portfolio of 11 high-growth, margin “power brands” including Mucinex, Gaviscon, Lysol, Finish, Vanish, Durex and more.
As part of this, Reckitt simplified its organizational structure and focused on three geographical regions: North America, Europe and emerging markets, moving away from the global business unit model.
The company’s interest in six manufacturing plants, including the Tijuana location in Mexico, will be transferred to sales. Tatabanya, Hungary. UK, Derby; Granola, Spain. Porto Alto, Portugal.
The company will also be separating parts of its Laposo plant in Brazil in the future, and its essential home business will also own Mortein brands in North America, Europe and Latin America.
Advent’s managing partner Ranjan Sen said in a statement that essential home business “provides a unique opportunity to create a focused, scaled platform for globally recognized home care brands that operate in attractive categories with structural growth.”
Reckitt is expected to close the transaction by the end of the year.
