Haleon shares rose slightly on Thursday morning on the London Stock Exchange, after the consumer healthcare group announced the sale of ChapStick, its range of lip balms.
In a press release, the company states that the brand will be taken over by Suave Brands, a portfolio company of private equity group Yellow Wood Partners, for a pre-tax cash consideration of $430 million.
The transaction will also be accompanied by the acquisition of a minority stake in Suave Brands, representing an investment of around $80 million.
Haleon explains that ChapStick, which markets scented lip balms, was no longer part of its core business, and that the sale will enable it to reduce the amount of debt.
ChapStick generated sales of £112 million (around 130 million euros) in fiscal 2023.
The deal is expected to close in the second quarter.
At around 10:00 a.m., Haleon shares were up 0.1%, while the FTSE 100 index nibbled 0.1%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Haleon plc specializes in the research, manufacture and marketing of drugs and consumer pharmaceutical products. Net sales break down by family of products as follows:
- oral health products (27.7%; no. 1 worldwide): Sensodyne, Parodontax, Polident, Biotene, Aquafresh brands, etc.;
- Pain relief medicines (23.5%; no. 1 worldwide): Panadol, Advil, Voltaren, Excedrin brands, etc.;
- medicines for digestive health (18.9%; no. 1 worldwide): TUMS, Nicorette, ENO, Chap Stick, Fenistil, Nexium brands, etc.;
- respiratory medicines (15.4%; no. 1 worldwide): Theraflu, Otrivin, Flonase, Contac brands, etc.;
- vitamins, minerals and food supplements (14.5%; no. 1 worldwide): Centrum, Emergen-C, Caltrate brands, etc.
Net sales are distributed geographically as follows: Europe/Middle East/Africa/Latin America (40.2%), North America (37.1%), and Asia/Pacific (22.7%).
HALEON PLC 
