Reckitt sells E45 skincare brand to Karo Pharma
Reckitt Benckiser said on Christmas Eve that it has entered a deal to sell the E45 brand and related sub-brands to Karo Pharma for an implied enterprise value of £200 million.
E45 is known for its gentle dermatological formulations. For the financial year ended 31 December 2020, net revenue was £43 million.
The Stockholm-based new owner of the brand has a health products focus but also markets the Indy Beauty vegan skincare brand.
The company said that the proposed sale, “if completed, would be another step forward in Reckitt's plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.
CEO Laxman Narasimhan 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.
“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 brand to capture the significant opportunities ahead.”
There are still some hurdles to clear before the sale can happen, including consultation with employee representatives in France. Assuming everything goes through as planned, the deal should close in Q2 next year.
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