Reckitt ponders new strategies for Essential Home business sale - Reuters

Investing.com -- British consumer goods company Reckitt is contemplating new strategies to facilitate the sale of its Essential Home business, which includes brands like Air Wick fresheners and Cillit Bang cleaners, according to a report from Reuters, citing sources. This development comes after the bids received for the business fell short of the company’s expectations, according to two individuals familiar with the process.

Despite the lower-than-expected bids, Reckitt is determined to continue with the sale process. The individuals, who requested anonymity due to the private nature of the discussions, also revealed that private equity firm Advent is still involved in negotiations for the assets.

In addition to the Essential Home business, Reckitt’s portfolio includes products such as Mucinex cold medication and Durex condoms. The company announced in July its intention to divest a collection of homecare brands by the end of 2025.

To bridge the valuation gap revealed by the lower bids, Reckitt might retain a stake in the business or structure the sale differently. One of the sources mentioned that several bids were below the company’s expectation of over 4 billion pounds ($5.4 billion).

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