Reckitt announces sale of E45 beauty brand for £200 million
Slough-based Reckitt Benckiser Group has announced that it is to sell its E45 brand and related sub-brands to Karo Pharma for £200 million.
The sale would strengthen the Group's intention to actively manage its portfolio for higher growth and is expected to close in the second quarter of 2022.
The brands had a combined net revenue of £43 million for the financial year that ended 31 December, 2020.
In Feburary 2021 Reckitt Benckiser acquired the US-based topical cream brand Biofreeze. In June of the same year it sold its Scholl brand, followed by the sale of its IFCN business in China in September.
Laxman Narasimhan, Chief Executive Officer of Reckitt, said: “E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare. 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% 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.”