Sources close to the matter report that Advent has emerged as a lead contender, with both parties exploring creative structuring options to bridge the valuation gap. These may include Reckitt retaining a minority stake or incorporating earn-outs'mechanisms commonly used in private equity to manage risk while preserving long-term upside. The Essential Home carve-out forms part of CEO Kris Licht's strategy to streamline operations and concentrate on higher-margin health and hygiene categories. The divestment process, launched in mid-2024, is expected to conclude by year-end 2025. Despite broader M&A headwinds, including macroeconomic volatility and trade disruptions, Reckitt's asset has drawn interest. However, Essential Home reported a 7% year-on-year revenue decline in Q1 2025 to '482m, reflecting pressure from shifting consumer trends and rising competition from private label products. Advent's sustained interest underscores the firm's appetite for carve-out deals and value...
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