Private equity firms eye Reckitt's Cillit Bang unit sale

In October 2024, Reckitt Benckiser, the UK-based consumer goods company, began exploring the sale of its essential homecare division, valued at approximately £6 billion. This division includes popular brands like Air Wick and Cillit Bang, which are well-known in the cleaning and home fragrance markets. Notably, the decision comes as part of a strategic initiative to streamline operations and focus on more profitable areas of the business. Reckitt has approached various prominent private equity firms, such as Apollo Global Management, KKR, and Clayton, Dubilier & Rice, to gauge their interest in acquiring this unit. Morgan Stanley has been enlisted as the adviser to present this opportunity to potential bidders through an investment case document. While other firms were considered, including CVC and Carlyle, sources suggest these entities may not submit bids. The information being circulated has drawn significant attention from large investment firms, reflecting the ongoing trend of consolidation and acquisition in the consumer goods sector. The sale, if successful, would highlight changes in Reckitt's approach to its business portfolio and could have widespread implications for its market strategy moving forward. Overall, potential buyers are now assessing the future profitability and synergies that could arise from owning such a well-established brand within the homecare category.