Advent’s Play for Global Brand Domination
Advent will pay up to $1.3 billion in deferred and contingent payments, contingent on performance metrics. Ranjan Sen, Advent’s managing partner, called the acquisition “a unique opportunity to build a focused, scaled platform of globally recognized home-care brands.”
With Advent at the helm, the newly independent Essential Home business is expected to innovate faster, expand deeper into new markets, and aggressively pursue category leadership in air care, pest control, and laundry solutions.
Following closing, Advent will operate Essential Home as a standalone company, with Reckitt providing transitional services, including manufacturing, supply chain, and operational support, to ensure a smooth separation.
Deal Details, Financial Impact, and Shareholder Rewards
The transaction, subject to regulatory approvals, is expected to close by the end of 2025. While the companies did not specify which regulatory bodies are involved, such high-profile cross-border deals typically require clearance in the U.S., U.K., and EU.
Reckitt anticipates $800 million in one-time costs associated with the spin-off, most of which will be paid in 2026. However, the company plans to sweeten the deal for shareholders with a $2.2 billion special dividend drawn from the proceeds—signaling a windfall for investors.
Financial advisers to Reckitt include Goldman Sachs International, Morgan Stanley & Co. International PLC, and Robey Warshaw LLP. Slaughter and May is providing legal counsel. Advent’s legal team was not disclosed as of Friday’s announcement.
