Overview

• Reckitt has agreed to sell a 70% stake in its Essential Home division to Advent International for $4.8 billion including debt
• Up to $1.3 billion of the deal value is deferred as performance-based earn-outs tied to future financial targets
• Reckitt will retain a 30% equity stake, exposing it to Essential Home’s recovery after multiple quarters of weak sales
• Once the transaction completes by year-end, subject to consultations and regulatory approvals, Reckitt will distribute a $2.2 billion special dividend and execute a share consolidation
• This divestment accelerates Reckitt’s focus on its portfolio of 11 core consumer health and hygiene powerbrands and precedes further strategic options for its Mead Johnson baby formula business