Reckitt divests Essential Home Unit to Advent International in USD 4.8B deal
This strategic move aligns with Reckitt’s ongoing efforts to streamline its portfolio and concentrate on higher-growth segments within consumer health and hygiene.
UK – Reckitt Benckiser Group plc, a British multinational consumer goods company, has announced the divestment of its Essential Home business unit to private equity firm Advent International in a deal valued at up to USD 4.8 billion.
Under the terms of the agreement, Reckitt will sell 70% of the Essential Home business to Advent International, retaining a 30% minority stake through Advent’s acquisition vehicle, a structure designed to provide Reckitt with potential long-term value enhancement opportunities.
The deal includes up to USD 1.3 billion in contingent and deferred consideration, with USD 0.4 billion tied to the unit’s 2025 operating performance, USD 0.3 billion related to vendor financing arrangements, and USD 0.6 billion contingent on achieving specific return thresholds.
Kris Licht, CEO at Reckitt, stated, “This moves Reckitt towards becoming a simpler, more effective world-class consumer health and hygiene company and it will enable us to focus on a core portfolio of high-growth, high-margin Powerbrands.”
“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 transaction, expected to close by December 31, 2025, pending regulatory approvals, also includes the transfer of six manufacturing plants and involves transitional agreements for administrative, operational, and supply services to ensure a smooth handover.
Reckitt plans to return approximately USD 2.2 billion to shareholders through a special dividend and share consolidation upon completion of the deal, in addition to its ongoing share buyback program.
Further details will be announced alongside its first-half 2025 results on July 24, 2025.
The company is set to incur one-time costs of USD 800 million, primarily in 2026, related to the separation of the Essential Home unit.
According to Reckitt, this deal fell below Reckitt’s initial expectations of £6 billion (USD 8 billion) when the business was put up for sale in 2024, leading to mixed analyst reactions.
The Essential Home unit, encompassing well-known brands like Air Wick air fresheners, Cillit Bang cleaners, Calgon, Woolite, and Mortein insecticides, generated £2 billion(USD 2.68 billion) in revenue in 2024, representing approximately 14% of Reckitt’s total revenue.
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