# Haleon to sell ChapStick brand to Suave Brands Company

- Link: https://www.directorstalkinterviews.com/haleon-to-sell-chapstick-brand-to-suave-brands-company/4121139473
- Published: 2024-01-25T07:36:43+00:00
- Author: Amilia Stone

**Haleon plc** (LON:HLN), a global leader in consumer health, has entered into a
binding agreement for the sale of the ChapStick brand to Suave Brands Company, a
portfolio company of Yellow Wood Partners.

Under the terms of the transaction, Haleon will receive pre-tax cash proceeds of
approximately $430 million, as well as a passive minority interest in the Suave 
Brands Company. At the time of entering into the binding agreement, this interest
was valued at approximately $80 million. Cash proceeds from the sale will be used
to pay down debt, underpinning our confidence to de-lever to net debt/Adjusted EBITDA
of below 3x during 2024.

ChapStick generated £112 million in revenue for the FY ended 31 December 2023.

The sale, subject to the satisfaction of customary closing conditions, is expected
to close in the second quarter of 2024.

Further detail on the transaction and its impact will be provided within our FY 
2023 Results announcement on 29 February 2024.

> **Brian McNamara, Chief Executive Officer, Haleon, said**: “Today’s announcement
> is consistent with Haleon being proactive in managing our portfolio, and being
> rigorous and disciplined where there are opportunities for divestment. While ChapStick
> is a great brand, much loved by consumers around the world, it is not a core focus
> for Haleon. Selling the brand allows us to simplify our business and pay down 
> debt more quickly. We’re confident the brand will continue to thrive under its
> new ownership.”

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