Published by Global Banking & Finance Review®
Posted on July 18, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleReckitt sells majority stake in Essential Home to Advent for $4.8 billion, retaining 30%. The deal impacts Reckitt's financial strategy and shareholder returns.
(Reuters) -Reckitt has sold a majority stake in its Essential Home business to private equity firm Advent International in a deal valued at $4.8 billion including debt, it said on Friday.
The consumer goods group said it would retain a 30% stake in the business, which makes Air Wick fresheners, Cillit Bang cleaners and insecticide Mortein.
Reuters exclusively reported last month that the two parties were in talks over a sale, with Reckitt likely to retain a minority stake.
Reckitt CEO Kris Licht has been trying to turn around the business and ease shareholder concerns over the strength of its brands in North America and Europe, where consumer confidence has been weak.
Reckitt said it plans to return excess capital to shareholders, including a special dividend of about $2.2 billion and a share consolidation, after the deal closes.
Reckitt shares were up about 1.2% in early trade.
Essential Home accounted for about 13% of group revenue in the first quarter but has struggled for several quarters, with sales down 7% year on year in the first three months of the year.
The value of the transaction includes up to $1.3 billion in performance-based and delayed payments tied to how the business performs and other financial conditions, it said, adding that the deal is expected to close by the end of the year.
Reckitt, brands of which include Dettol handwash and Durex condoms, has also been considering options for its litigation-hit baby formula business, Mead Johnson.
(Reporting by Yadarisa Shabong and Prerna Bedi in BengaluruEditing by Sherry Jacob-Phillips and David Goodman)
Reckitt sold a majority stake in its Essential Home business to private equity firm Advent International.
The deal is valued at $4.8 billion, which includes debt.
Reckitt will retain a 30% stake in the Essential Home business.
Reckitt plans to return excess capital to shareholders, including a special dividend of about $2.2 billion.
Essential Home accounted for about 13% of group revenue in the first quarter but has struggled, with sales down 7% year on year.
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