Reckitt announces proposed sale of E45 to Karo Pharma

Slough-based Reckitt Benckiser Group has announced it has entered into an agreement for the proposed sale of its E45 brand and related sub-brands to Karo Pharma, for an indicted 200 million pound enterprise value.

It follows the divestments of its Scholl brand and its Infant Formula and Child Nutrition (IFCN) business in China, as part of its plan to actively manage its portfolio for higher growth.

“E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skin care,” said Reckitt’s CEO, Laxman Narasimhan, in a release. “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, including four to six percent growth in health.”

He continued: “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 E45 brand to capture the significant opportunities ahead.”

The proposed sale is expected to close in the second quarter of 2022 and is subject to the satisfaction of customary closing conditions.