Britain’s Reckitt is talking exclusively to private equity firm Advent International over a sale of the consumer goods group’s Essential Home business, two sources with direct knowledge of the matter told Reuters.
Reckitt could retain a minority stake in Essential Home, the sources said, adding that a deal for the business that produces Air Wick fresheners and Cillit Bang cleaners could be announced in coming weeks.
The sources cautioned that there remained a chance that no deal would be completed and asked not to be identified because the matter is private.
Reckitt and Advent declined to comment.
The sale is part of Reckitt Chief Executive Kris Licht’s turnaround strategy. He is seeking to reassure shareholders concerned about the strength of its brands in North America and Europe, where consumer confidence has been dwindling.
Reuters reported last week that Reckitt was considering new options to advance the sale of Essential Home after bids fell short of the 4 billion pounds ($5.4 billion) the group had expected.
Essential Home business has struggled for several quarters, with sales falling 7% in the first quarter of this year to 482 million pounds, about 13% of quarterly group revenue.
Source: Reuters.com