THE WHAT? Reckitt Benckiser has announced the planned sale of its E45 brand and related sub-brands to Karo Pharma for an implied enterprise value of £200 million.
THE DETAILS For the financial year ended December 31, 2020, the brands bought in a combined net revenue of £43 million.
The deal is expected to close in the second quarter of the year, and is subject to customary closing conditions.
THE WHY? The sale is part of Reckitt’s wider strategy to actively manage its portfolio for higher growth. Laxman Narasimhan, CEO of Reckitt, explains, “E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skin care. 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 percent 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.”