Reckitt sells skincare brand E45 for £ 200million

Consumer giant Reckitt Benckiser has agreed to sell skincare brand E45 for £ 200million.

The Slough-based company, which also owns brands such as Dettol and Durex, told investors on Friday morning that it was set to sell the business to Swedish group Karo Pharma.

E45 cream was created in 1952 by the subsidiary of Reckitt Crookes Healthcare and was initially only available in hospitals.

However, the increased demand and positive results pushed the brand to enter traditional retail.

In the fiscal year ended December 2020, the E45 brand and associated sub-brands generated combined net sales of £ 43 million.

The proposed sale is the latest move by Reckitt to shake up its portfolio in an effort to focus on the fastest growing areas of its operations.

It comes after the company sold its infant formula and infant nutrition business in China and its foot treatment brand Scholl earlier this year.

Reckitt’s strategy also saw it acquire the menthol processing business Biofreeze in July.

Managing Director Laxman Narasimhan helps, “E45 is an iconic and trusted skin care brand that in 60 years has grown into a leader in science-based skin care.

“As we move from a brand-driven growth strategy to a category-driven growth strategy, we are focusing on high growth categories with brands that we can expand into new places and spaces to support our medium-term growth ambitions, including 4% to 6% growth in health.

“Now is the right time to pass the E45 over to a new owner, and we are confident Karo will build on the strength of the E45 brand to seize the important opportunities ahead. “

The sale is subject to closing conditions, including consultations with employee representatives in France, but is expected to be finalized in the second quarter of next year.