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Consumer goods group Reckitt has warned that market conditions could affect the sale of its Essential Home cleaning products business, after sales in the division fell more than expected.
The division, which includes brands such as Cillit Bang and Air Wick, had been expected to receive offers of between $4bn and $5bn from private equity bidders. But last week one firm trimmed its offer to between $3bn and $4bn, the Financial Times previously reported, as uncertainty about tariffs and market volatility led to a slowdown in dealmaking.
London-listed Reckitt said at its quarterly results on Wednesday that it still intended to exit the division by the end of 2025, “whilst recognising that market conditions may impact this timeframe”.
Last summer, the company launched a wide-ranging restructuring, including the separation of its infant formula business Mead Johnson and the sale of Essential Home, which has annual revenues of £1.9bn.
Revenues for the division fell 7 per cent to £482mn in the first quarter, compared with an expected 2 per cent drop.
Group like-for-like revenues grew 1.1 per cent, short of the 1.4 per cent forecast by analysts. Revenues for core Reckitt, the portfolio that would remain following Mead Johnson and Essential Home’s separation, rose 3.1 per cent, ahead of expectations.
