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Reckitt to sell E45 skincare brand to Karo Pharma for $268 million

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By Reuters
Reckitt to sell E45 skincare brand to Karo Pharma for $268 million
Reckitt to sell E45 skincare brand to Karo Pharma for $268 million   -   Copyright  Thomson Reuters 2021   -  

<div> <p> -Reckitt Benckiser said on Friday it plans to sell its E45 skincare brand and related sub-brands to Karo Pharma for 200 million pounds ($267.98 million), as the British consumer goods maker shifts focus to higher growth areas.</p> <p>The Durex condom and Lysol disinfectant maker said the businesses generated a combined net revenue of 43 million pounds last year.</p> <p>The Slough-based company has been trimming its portfolio to concentrate on high growth categories such as disinfectants and health care products that have seen a boom during the <span class="caps">COVID</span>-19 pandemic.</p> <p>In February, Reckitt sold its Scholl footcare business to private equity firm Yellow Wood Partners, and a few months later signed a deal to sell its infant formula business in China for $2.2 billion to Primavera Capital Group.</p> <p>Reuters had reported last year that the company was preparing to sell some non-core brands and was seeking out private equity bidders.</p> <p>“As we shift from a brand-led to a category-led growth strategy, we are focusing on high growth categories with brands we can stretch into new places and spaces to support our medium-term growth ambitions, including 4%-6% growth in Health (business),” <span class="caps">CEO</span> Laxman Narasimhan said in a statement.</p> <p>In a separate statement, Karo Pharma said the deal is structured as a put option agreement and when completed will scale up its operations in the United Kingdom and strengthen its position in the dermatology category.</p> <p>Reckitt will provide service and manufacturing support to Karo for a limited time following completion of the deal, which is expected in the second quarter of 2022, Karo Pharma said in a statement. </p> <p>No manufacturing sites are included as part of the deal and Karo intends to transfer production to a new third party contract manufacturing organization, the Stockholm-based healthcare company added. </p> <p>($1 = 0.7463 pounds)</p> </div>