Reckitt finalizes divestment of Essential Home business to Advent International
The unit will be excluded from Reckitt’s FY 2025 like-for-like net revenue growth reporting.
UK – Reckitt Benckiser Group plc, a British multinational consumer goods company, has completed the divestiture of its Essential Home business to Advent International, L.P.
This move marks a pivotal strategic shift toward a streamlined focus on its power brands in consumer health and hygiene.
The deal closed on December 31, 2025, following an initial agreement announced on July 18, 2025, for an enterprise value of up to USD 4.8 billion, including up to USD 1.3 billion in contingent and deferred consideration tied to performance milestones and return thresholds.
Reckitt retains a 30% equity stake in Advent’s acquisition vehicle, positioning it for potential long-term upside in value while offloading majority control.
This move simplifies Reckitt’s portfolio by exiting the underperforming Essential Home unit, which generated about 13% of group revenue but saw sales decline 7% year-over-year in early 2025 amid weak consumer confidence in key markets.
Leadership emphasized enhanced focus on high-growth, high-margin brands, with plans to mitigate separation costs and achieve at least 300 basis points in fixed-cost reductions by 2027.
Reckitt anticipates around USD 0.8 billion in one-off separation costs, mainly payable in 2026, and plans to return excess capital to shareholders via a USD 2.2 billion special dividend alongside share consolidation, with details forthcoming in early January 2026.
Post-completion, transitional services and manufacturing supply agreements ensure operational continuity between the entities.
Essential Home encompasses roughly 80 brands, including Air Wick, Cillit Bang, and Mortein, sold across 70 countries, and now benefits from Advent’s private equity expertise under majority ownership.
Reckitt Benckiser Q3 FY25 financial highlight
Reckitt Benckiser Group plc delivered strong Q3 FY 2025 results, with Group like-for-like net revenue growth of +7.0% to £3,611 million (USD 4.87 billion), driven primarily by Core Reckitt’s +6.7% LFL growth to £2,603 million (USD 3.51 billion).
Reckitt achieved LFL net revenue growth of +6.7% in Q3, fueled by +3.4% volume growth and +3.3% price/mix, marking sequential volume improvements across all areas.
Emerging Markets led with +15.5% LFL growth to £1,080 million (USD 1.46 billion), driven by broad-based strength in China, India, and high-potential markets like Indonesia.
Europe returned to +0.8% LFL growth, driven by premiumisation and innovation, while North America grew +1.3% LFL, boosted by non-seasonal brands like Lysol.
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