In a strategic move to sharpen its focus on consumer health and hygiene, Reckitt Benckiser Group PLC today announced it has entered into a definitive agreement to sell 70% of its Essential Home business to U.S.-based private equity firm Advent International LP. The transaction, which values the business at $4.8 billion, marks a significant milestone in Reckitt’s transformation journey.
The Reckitt $4.8B Cleaning Business Sale to PE Firm Advent will see Reckitt retain a 30% stake in the business, maintaining a continued interest in the growth of Essential Home, whose brand portfolio includes Air Wick, Calgon, Cillit Bang, Woolite, and other leading names in air care, pest control, and laundry.
As part of the deal structure, Advent may pay up to $1.3 billion in contingent and deferred payments should the business meet certain operational performance targets.
“This transaction marks a pivotal step in our journey to become a more focused, high-performing global leader in consumer health and hygiene,” said Kris Licht, Chief Executive Officer of Reckitt. “It enables us to prioritize our portfolio of high-growth, high-margin powerbrands, while retaining an interest in Essential Home’s future success.”
Essential Home operates across 70 markets with approximately 75 brands and generated £2 billion ($2.7 billion) in net revenue in 2024, representing about 14% of Reckitt’s total revenue.
Ranjan Sen, Managing Partner at Advent International, commented: “The carve-out represents a unique opportunity to build a globally recognized platform of home-care brands. We are excited to partner with Reckitt in scaling and innovating Essential Home for the future.”
Reckitt expects to incur one-off costs totaling $800 million, primarily in 2026, as part of the separation. The company plans to return excess capital to shareholders through a $2.2 billion special dividend following completion of the transaction.
Slaughter and May is serving as legal advisor to Reckitt, with Goldman Sachs International, Morgan Stanley & Co. International PLC, and Robey Warshaw LLP acting as financial advisors. Legal counsel for Advent was not disclosed.
The deal is subject to customary regulatory approvals and is expected to close by the end of 2025. Following the transaction, Reckitt will enter into transitional agreements with Advent to provide support, operational, manufacturing, and supply services during the handover period.
