The consumer goods company Reckitt Benckiser to sell infant nutrition formula to Primavera Capital for $2.2 billion.
Reckitt Benckiser will retain an 8 per cent stake in the unit and it will see net cash proceeds of about $1.3 billion, which it plans to reduce the debt, the company said in a statement.
The company expects a net loss of about £2.5 billion ($3.5 billion) related to the sale, the deal includes manufacturing plants in Guabgzhou, China and Nijmegen in Netherlands and also the licence of Mead Johnson and Enfa family of brands in china.
The complete transaction is expected to be completed in the second half of 2021.
The sale of Reckitt ends the company’s venture into the baby formula business which was started four years ago.
As part of the Chief Executive Officer Laxman Narasinhan’s biggest portfolio revamp, Reckitt has put its infant-nutrition business in greater china under its strategic review begning of this year since taking the company’s throne in 2019.
While Reckitt’s overall sales grew a record 12 per cent in 2020 amid surging demand for Lysol and hygiene products, the China baby-milk business has been a drag on performance.
About Reckitt Benckiser
It is a British multinational consumer goods company found in 1999, which is headquartered in England, It produces nutrition, health and hygiene products in aroound 60 countries and are sold in around 60 countries and sold around 200 countries.
The company’s products include the brands Dettol, Strepsils, Veet the indigestion remedy Gaviscon, Wick and Mead Johnson.
About Primavera Capital Group
Primavera Capital Group is one of the leading china-based investment firm which manages funds of leading institutions, corporations and families in china and other various parts of the world.
The company was found in the year 2010 by Dr. Fred Hu, who is an economist.
