Reckitt to Sell £1.9bn Homecare Brands and Restructure

Reckitt Benckiser Group Plc is planning to sell its homecare brands and review strategic options for its infant formula business as part of a strategy to revive growth. The UK-based consumer goods company will dispose of brands such as Air Wick, Cillit Bang, Calgon, and Mortein, which generated approximately £1.9 billion ($2.5 billion) in revenue last year. This move is aimed at focusing on its core health and hygiene products, including Strepsils, Nurofen, and Durex. The company will also consider options for its Mead Johnson nutrition business, which includes the Enfamil brand, following legal challenges in the US.

The decision comes amid a broader restructuring plan that will streamline the organization, reduce management layers, and target a reduction in fixed costs from 22% to 19% by 2027. The restructuring is expected to cost about £1 billion. Reckitt's shares rose 4% following the announcement, despite the company lowering its sales growth outlook for the year to between 1% and 3%. The company has faced challenges, including flat sales in the second quarter and a significant legal ruling involving its Enfamil product.