Advent International has agreed to acquire a majority stake in Reckitt’s Essential Home division in a deal valued at $4.8bn, including debt, marking one of the largest private equity transactions in the consumer sector this year, according to a report by Reuters.
The deal, which sees Reckitt retaining a 30% minority stake, underscores private equity’s continued appetite for consumer staples businesses with established brands and restructuring potential. Essential Home — which owns brands including Air Wick, Cillit Bang, and Mortein — accounted for roughly 13% of Reckitt’s Q1 revenue, though the division has faced recent sales declines.
The transaction includes up to $1.3bn in performance-based and deferred payments, tying future value to business performance and other financial conditions. Closing is expected by year-end 2025.
For Advent, the acquisition presents an opportunity to unlock value from a category-leading yet underperforming portfolio, as the firm seeks to strengthen its consumer products platform globally. The deal also reflects a broader trend of corporate carve-outs being leveraged by sponsors seeking mature assets with upside through operational efficiency and focused investment.
Reckitt, meanwhile, plans to return proceeds to shareholders via a $2.2bn special dividend and a share consolidation, positioning the divestiture as a value-creating move amid CEO Kris Licht’s broader turnaround strategy.
The sale follows rising investor pressure on Reckitt to simplify its portfolio and sharpen focus on core health and hygiene businesses. The group continues to explore strategic options for other non-core assets, including its Mead Johnson baby formula unit, which faces ongoing litigation risks.
