Reckitt Benckiser is offloading its Essential Home business, which includes household names like Air Wick, Calgon, Woolite, and Cillit Bang, to private equity firm Advent International for £3.6 billion, in a move that sharpens the focus on its core Powerbrands.
In July 2024 Reckitt set out its strategy to reshape into a more efficient, world-class consumer health and hygiene company, focused on a portfolio of 11 high-growth, high-margin Powerbrands. The Transaction is a key part of this strategy and represents a significant step forward in reshaping Reckitt.
Reckitt will retain an interest in Essential Home through a 30 per cent equity stake in Advent’s acquisition vehicle providing a potential long-term value enhancement opportunity for Reckitt.
Essential Home, which operates across air care, surface, pest control, and laundry categories, generated £2 bn in net revenue in 2024 — accounting for 14 per cent of Reckitt’s total sales with adjusted operating profit of £490 million.
Kris Licht, Reckitt CEO, said the divestment marks a key milestone in the company’s transformation journey.
“This moves Reckitt towards becoming a simpler, more effective world-class consumer health and hygiene company,” he said. “It will enable us to focus on our core portfolio of high-growth, high-margin Powerbrands.”
Licht added that Advent’s majority ownership will bring fresh investment and operational momentum to Essential Home, while Reckitt’s retained stake represents a “potential long-term value enhancement opportunity.”
Advent sees the acquisition as a chance to create a focused home care platform with global reach and growth potential.
“The carve-out represents a unique opportunity to create a scaled platform of globally recognised home care brands,” said Ranjan Sen, Managing Partner at Advent.
“We’re confident we can unlock the brands’ full potential and drive operational excellence.”
The transaction is expected to complete by 31 December, subject to regulatory approvals and customary consultations.
The move aligns with Reckitt’s ongoing simplification strategy, which centres on 11 so-called “Powerbrands” such as Dettol, Lysol, and Durex.