Reckitt Benckiser reportedly in exclusive talks with PE player Advent for essential home business sale

British consumer goods company Reckitt Benckiser is reported to be in exclusive talks with American private equity player Advent International for the sale of its essential home business, news agency Reuters reported on June 12 citing people familiar with the development, adding that an agreement could be announced in the coming weeks, but there is no certainty of the talks fructifying into a deal.

The company has been exploring to hive off less profitable businesses in its fold, and has said in the past that it may be keen to focus on health and hygiene brands. The report added that Reckitt may keep a minority stake in the Essential Home division as part of a deal.

Reckitt Benckiser has been exploring to sell home products unit - which offers brands such as Airwick and Cillit Bang - as reported by Bloomberg News last year, for about $8 billion. In April, potential bidders Lone Star Funds and Advent International had indicated a much lower valuation for the home products business, the report added.

Reckitt Benckiser has been looking to hive off certain brands - including those in the homecare portfolio - in an attempt to streamline and focus its business, and improve its financial performance by concentrating on 'power brands' that are most profitable with high growth potential. For Reckitt, the power brands include Strepsils lozenges, cold medicine Mucinex, Gaviscon for acidity, and Durex condoms. Disinfectants like Dettol and Lysol too have seen a significant boom during the pandemic years.