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The consumer goods group Reckitt’s plan to sell off a portfolio of cleaning products including Air Wick to private equity is at risk of falling through amid the recent bout of market turmoil.
Reckitt’s talks with private equity groups about a sale of its household cleaning business have slowed and it is unclear whether any deal will be reached, according to people familiar with the matter.
The business, which has annual revenues of about £1.9bn, had garnered interest from buyout firms including Advent and Lone Star. However, one of the suitors, Apollo Global, did not submit an offer in the final stages of bidding, one of the people said.
They cautioned that a deal could still be reached and that no final decisions had been made.
London-listed Reckitt warned in its first-quarter earnings last month that volatile market conditions could delay the sale of the cleaning products portfolio, but that it still planned to exit the unit by the end of the year.
“We are encouraged by the interest that we have seen in the business . . . although we recognise that market conditions may impact this timeframe,” chief executive Kris Licht told analysts.
The division, which also includes brands such as Cillit Bang and Dettol, had been expected to receive offers of between $4bn and $5bn from private equity bidders. However, at least one group trimmed its offer to between $3bn and $4bn, the Financial Times previously reported.
Last summer, Reckitt initiated a wide-ranging restructuring that included the sale of its Essential Home unit.
Revenues for the business dropped 7 per cent to £482mn in the first quarter of 2025, compared with an expected 2 per cent drop.
Reckitt’s shares have traded roughly flat so far this year, giving the FTSE 100 group a market capitalisation of about £34bn.
The global tariffs unleashed by US President Donald Trump have hampered dealmaking, including for private equity investors who now face difficulty navigating heightened volatility and uncertainty.
That has forced some private equity groups to slow down their dealmaking and focus on managing their existing portfolio companies, a turnaround from previous expectations for a boom in activity under the new US administration.
Reckitt declined to comment on the sale process. Advent, Apollo and Lone Star declined to comment.
