Haleon to
sell ChapStick
25 January 2024: Haleon plc, a global
leader in consumer health, has entered into a binding agreement for
the sale of the ChapStick brand to Suave Brands Company, a
portfolio company of Yellow Wood Partners.
Under the terms of the transaction,
Haleon will receive pre-tax cash proceeds of approximately $430
million, as well as a passive minority interest in the Suave Brands
Company. At the time of entering into the binding agreement, this
interest was valued at approximately $80 million. Cash proceeds
from the sale will be used to pay down debt, underpinning our
confidence to de-lever to net debt/Adjusted EBITDA of below 3x
during 2024.
ChapStick generated £112 million in revenue for the FY ended 31
December 2023.
The sale, subject to the satisfaction of customary closing
conditions, is expected to close in the second quarter of 2024.
Further detail on the transaction and its impact will be provided
within our FY 2023 Results announcement on 29 February 2024.
Brian McNamara, Chief Executive
Officer, Haleon, said: "Today's
announcement is consistent with Haleon being proactive in managing
our portfolio, and being rigorous and disciplined where there are
opportunities for divestment. While ChapStick is a great
brand, much loved by consumers around the world, it is not a core
focus for Haleon. Selling the brand allows us to simplify our
business and pay down debt more quickly. We're confident the brand
will continue to thrive under its new
ownership."
Ends
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About ChapStick
ChapStick, the lip expert, makes it
a priority to help people care for their lips all year round.
Originally created in the early 1880s, ChapStick is known today as
America's favourite lip balm. As part of Haleon, ChapStick offers a
variety of products and fun flavours that promote happier and
healthier lips. For more information, please visit
www.chapstick.com.
About Haleon
Haleon (LSE / NYSE: HLN) is a global
leader in consumer health, with a purpose to deliver better
everyday health with humanity. Haleon's product portfolio spans
five major categories - Oral Health, Pain Relief, Respiratory
Health, Digestive Health and Other, and Vitamins, Minerals and
Supplements (VMS). Its long-standing brands - such as Advil,
Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident,
parodontax and Centrum - are built on trusted science, innovation
and deep human understanding.
For more information, please visit
www.haleon.com.