Reckitt Benckiser Group plc (LON:RKT) has announced that it has entered into an agreement for the proposed sale of its E45 brand and related sub-brands to Karo Pharma for an implied enterprise value of £200 million. For the financial year ended 31 December 2020, the brands had a combined net revenue of £43 million.
The Proposed Sale, if completed, would be another step forward in Reckitt’s plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.
Laxman Narasimhan, Chief Executive Officer of Reckitt Benckiser, said:
“E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare. 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. Now is the right time to pass E45 on to a new owner, and we are confident that Karo will build on the strength of the E45 brand to capture the significant opportunities ahead.”
The Proposed Sale is subject to the satisfaction of customary closing conditions, including consultation with employee representatives in France. Subject to the satisfaction of those conditions, the Proposed Sale of the E45 business is expected to close in the second quarter of 2022.