Reckitt Benckiser Group (LSE:RKT) has reached an agreement to divest most of its Essential Home division to private equity firm Advent International in a transaction valued at as much as $4.8 billion (£3.6 billion). The deal, expected to close by year-end, will see Reckitt retain a 30% ownership interest and receive deferred and contingent payments totaling $1.3 billion (£1.0 billion).
The consumer goods giant plans to return excess capital to shareholders via a special dividend of $2.2 billion (£1.6 billion), alongside its ongoing share repurchase program. This shareholder payout notably surpasses the immediate net proceeds Reckitt expects from the sale, estimated at $1.3 billion (£0.9 billion).
Reckitt is scheduled to announce the next tranche of its share buyback alongside its half-year results on July 24, 2025.
Although the transaction’s value falls short of prior estimates near $5.8 billion (£4.3 billion), finalizing the sale could enhance management’s credibility and refocus investor attention on Reckitt’s core operations. Nonetheless, ongoing legal challenges related to NEC remain a risk factor.
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