Reckitt Benckiser (RKT) proposes sale of E45 brand for £200m
09:53, 24 December 2021
Reckitt Benckiser announced on Friday that it has entered into an agreement for the proposed sale of its E45 brand and related sub-brands to Karo Pharma (Karo) for £200m ($268m).
The company, which is also behind the brands Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon and Nurofen, said the E45 brands had a combined net revenue of £43m for the financial year ended 31 December 2020.
Reckitt said that if the proposed sale is completed, it would be another step forward in its plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.
A word from the chief exec
Laxman Narasimhan, the chief executive of Reckitt, commented on the proposed sale of the E45 brand - the product helps manage dry or itchy skin, and conditions such as eczema, dermatitis, psoriasis and ichthyosis.
“E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare. As we shift from a brand-led to a category-led growth strategy, we are focusing on high growth categories with brands we can stretch into new places and spaces to support our medium-term growth ambitions, including 4-6% growth in Health.
“Now is the right time to pass E45 on to a new owner, and we are confident that Karo will build on the strength of the E45 brand to capture the significant opportunities ahead,” he added.
The proposed sale is now subject to the satisfaction of customary closing conditions, including consultation with employee representatives in France.
Subject to the satisfaction of the conditions, the sale of the E45 business is expected to close in the second quarter of 2022, the company said.
Shares in Reckitt Benckiser were up 0.22% on Friday morning on the London Stock Exchange.