Exclusive: Reckitt kicks off sale of some personal care brands


© Reuters. FILE PHOTO: Products produced by Reckitt Benckiser; Vanish, Finish, Dettol and Harpic are seen in London

By Martinne Geller and Arno Schuetze

LONDON/FRANKFURT (Reuters) – Consumer goods group Reckitt Benckiser Group (L:) is preparing to sell some of its non-core personal care brands, including Veet hair removal cream and Clearasil acne cream, four sources familiar with the matter said on Monday.

The package of brands up for sale – which also includes E45 skin cream and Scholl foot products – could be worth as much as 1 billion pounds ($1.3 billion) in a sale, two of the sources said, based on estimates of annual earnings before interest, tax, depreciation and amortisation north of 120 million pounds.

The process comes as Reckitt is generating unusually strong sales in its hygiene business due to the COVID-19 pandemic, as people snap up its Lysol and Dettol disinfectants. It is also a strategic step for its new chief executive, Laxman Narasimhan, who has been in the top job for one year.

Veet hair removal creams may also be seeing a boost, another source said, as people curb salon visits and do more grooming at home.

Reckitt is working with advisers and has already sent out information on the assets, two of the sources said.

Reckitt declined to comment.

The brands are likely to appeal to private equity players, the sources said, since they are cash-generative.

They do not fit into the two main businesses Reckitt has been focusing on – health and hygiene.

Unilever (L:) (AS:), Beiersdorf (DE:) and Henkel (DE:) all sell personal care products and also therefore could be potential suitors, the sources said. Beiersdorf and Henkel, both based in Germany, are interested in parts of the package, two of the sources said.

Henkel declined to comment. Beiersdorf and Unilever were not immediately available.

UK-based Reckitt, which started out as a home cleaning company, for years worked to build out its health-related business, which includes Enfamil formula, Durex condoms and Nurofen tablets.

A strategy by previous management to separate the health and hygiene units into two stand-alone, in-house businesses, which led to speculation of a corporate break-up, was later scrapped.

($1 = 0.7753 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*