UK-based consumer goods company Reckitt Benckiser Group plc (LON:RKT) announced on Friday that it has agreed to divest its Essential Home business to private equity firm Advent International L.P. for an enterprise value of up to USD4.8bn.

Reckitt will retain a 30% equity stake in the acquisition vehicle, allowing for potential long-term value creation.

The transaction supports Reckitt's strategic shift announced in July 2024, focusing on its 11 Powerbrands and streamlining operations as a global consumer health and hygiene company. Essential Home accounted for approximately 14% of Reckitt's 2024 net revenue and generated GBP486m in unaudited adjusted operating profit for the 12 months ending 31 March 2025.

Reckitt expects to incur approximately USD800m in cash tax and other one-off separation-related costs, mostly in 2026. The company anticipates returning approximately USD2.2bn to shareholders through a special dividend and share consolidation post-completion.

The transaction includes up to USD1.3bn in contingent and deferred consideration, tied to performance metrics and financing arrangements. Completion is expected by 31 December 2025, subject to regulatory approvals and employee consultations.

Reckitt will also enter transitional service and manufacturing agreements with Essential Home to support operational continuity after the separation.

Essential Home's brand portfolio includes Air Wick, Woolite and Easy-Off, with six manufacturing plants transferring as part of the deal.

(USD1=GBP0.74)