Reckitt to Sell Majority Stake in Home-Care Unit to Advent for up to $4.8 Billion

Reckitt Benckiser is selling a majority stake in its home-care business, valued at up to $4.8 billion including debt, to Advent International. The deal is part of the company's plan to focus on core brands and exit non-core businesses. Reckitt will keep a 30% stake in the business and expects to return about $2.2 billion to shareholders through a special dividend. The deal is expected to close by year-end.

Reckitt Benckiser Group plc ("Reckitt") has entered into an agreement with Advent International, L.P. ("Advent") to divest its Essential Home business ("Essential Home") for an enterprise value of up to US$4.8 billion [1]. The deal, which is part of Reckitt's strategic plan to reshape into a more efficient, world-class consumer health and hygiene company, represents a significant step forward in reshaping the company [1].

Under the terms of the agreement, Reckitt will retain a 30% equity stake in Essential Home through Advent's acquisition vehicle. The transaction is expected to close by 31 December 2025, subject to customary regulatory approvals [1]. The enterprise value includes up to c. US$1.3 billion of contingent and deferred consideration, with Reckitt expecting to incur cash tax, transaction, and other one-off costs of c. $0.8 billion, predominantly payable in 2026 [1].

Reckitt's Chief Executive Officer, Kris Licht, commented on the agreement, stating, "We are executing our strategic plan at pace. The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business. 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" [1].

Advent's Managing Partner, Ranjan Sen, also expressed enthusiasm for the partnership, noting that the carve-out represents a unique opportunity to create a focused, scaled platform of globally recognised home care brands that operate in attractive categories with structural growth tailwinds [1].

Essential Home operates across the air care, surface, pest, and laundry segments and generated c. £2.0 billion of net revenue in 2024, representing c. 14% of Reckitt’s total net revenue. The portfolio includes global brands such as Air Wick, Calgon, Woolite, Cillit Bang, Resolve, Sole, and Easy-Off, along with around 75 other brands across over 70 markets [1]. Reckitt's interest in six manufacturing plants will transfer with Essential Home, including plants in Tijuana (Mexico), Tatabanya (Hungary), Derby (UK), Granollers (Spain), Porto Alto (Portugal), and Florencio (Argentina) [1].

The transaction is expected to complete by 31 December 2025 following the key elements of separation of Essential Home from Reckitt’s Core business and subject to consultation with Reckitt’s works councils, as applicable, and the receipt of certain regulatory approvals [1]. Reckitt will also engage with its other relevant employee bodies in relation to the Transaction as appropriate in accordance with applicable law.

Reckitt will return c. US$2.2 billion to shareholders through a special dividend following completion of the transaction, in addition to its ongoing share buyback programme [1]. The special dividend will be in addition to Reckitt’s ongoing share buyback programme, with Reckitt intending to announce its next buyback tranche with H1 2025 results on 24 July 2025 [1].

References:
[1] https://www.reckitt.com/media-landing/press-releases/2025/reckitt-agrees-to-divest-essential-home/
[2] https://www.marketscreener.com/news/advent-international-l-p-entered-into-an-agreement-to-acquire-70-stake-in-essential-home-business-ce7c5cdedd8cf522
[3] https://www.wsj.com/business/deals/reckitt-benckiser-to-sell-essential-home-business-in-4-8-billion-deal-ad1171e0