Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) said it agreed to sell its E45 skincare business to Karo Pharma for an implied enterprise value of £200mln as part of its drive for higher growth.
The brands had a combined net revenue of £43mln in 2021.
Under its plan to actively manage its portfolio for higher growth, Reckitt recently divested its IFCN business in China and its Scholl brand, and acquired Biofreeze.
"E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare,” said Reckitt chief executive Laxman Narasimhan.
“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 4%-6% growth in Health.
“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 sale is expected to close in the second quarter of 2022.