Reckitt shares up on report of potential homecare asset sale

Investing.com -- Shares of Reckitt Benckiser Group PLC (LON:RKT ) rose on Wednesday following a Bloomberg News report that the company is in early discussions with potential buyers for its homecare assets.

The potential sale, which could exceed £6 billion, involves brands such as Airwick air fresheners and Cillit Bang cleaners, Bloomberg reported citing people familiar with the matter.

Reckitt is working with Morgan Stanley to explore interest from financial investors and some consumer companies. A formal sale process is expected to commence within the next few months, with completion expected in 2025.

In addition to the homecare assets, Reckitt is evaluating options for its infant formula brand, Mead Johnson, with the assistance of Goldman Sachs Group Inc (NYSE:GS ).

The company, which acquired Mead Johnson in a $17 billion deal in 2017, has faced challenges with this unit, including a £9 billion charge and ongoing litigation. Discussions are ongoing, and no final decision has been made regarding the potential sale of this division.

Reckitt's July announcement of plans to divest non-core homecare brands and review options for its infant formula business aligns with its strategy to concentrate on key "power brands" like Strepsils lozenges, Mucinex cold remedy, Gaviscon, and Durex condoms. The company also plans to focus on high-performing disinfectants such as Harpic, Vanish, Dettol, and Lysol.

Source: Investing.com