Advent International remains interested in acquiring Reckitt’s Essential Home unit – which includes the Air Wick and Cillit Bang brands – as the UK-based consumer goods group explores its options for an exit after initial bids fell short of expectations, according to a report by Reuters.
The report cites unnamed sources as revealing that Advent has emerged as key contender in the ongoing process and that discussions between Reckitt and the PE firm remain live, as both parties evaluate structuring solutions to close the valuation gap.
Initial non-binding offers reportedly came in below Reckitt’s internal target of over £4bn ($5.4bn), prompting the company to consider retaining a minority stake or leveraging alternative deal structures – a move often favoured in private equity transactions to de-risk upfront valuations while maintaining future upside through partial ownership or earn-outs.
Reckitt, which is also owns Durex and Mucinex, originally announced plans in mid-2024 to divest the Essential Home portfolio by year-end 2025, aligning with CEO Kris Licht’s broader strategic pivot to streamline operations and refocus on higher-margin, core health and hygiene assets.
The potential carve-out has attracted interest despite a cautious M&A environment, where macroeconomic volatility and global supply chain disruptions – exacerbated by ongoing geopolitical trade tensions – have weighed on deal flow.
Market conditions have also presented challenges for the unit itself. Essential Home revenues declined 7% year-on-year in Q1 2025 to £482m, underscoring performance headwinds as legacy brands face increasing competition from private label products and shifting consumer preferences post-pandemic.
