Proactive Investors - Reckitt Benckiser (LON:RKT) is in talks with interested parties to dispose of its £6 billion homecare portfolio, which includes household brands Air Wick, Mortein, Calgon and Cillit Bang, Bloomberg has reported.
The reported discussions align with an announcement from the FTSE 100-listed FMCG giant in July that plans to get rid of certain non-core products from its portfolio.
In July, management said it plans to make a “sharper, simpler Reckitt” focusing on high-margin ‘Powerbrands’ including Strepsils, Gaviscon, Nurofen, Dettol, Finish, Durex and others in the consumer health and hygiene business.
A formal sale process led by Morgan Stanley (NYSE:MS) is expected to commence within months, according to the Bloomberg report.
Reckitt is also mulling the disposal of its Mead Johnson Nutrition business, housing brands Enfamil and Nutramigen.
The household goods giant has struggled to grow the business in recent years, leading to a double-digit fall on its share price in the past 12 months alone.
Net revenues fell 3.7% year on year and operating profit margins tightened by 20 basis points the first half of Reckitt’s current financial year.