Reckitt to sell off major brands as it simplifies global giant

Health and hygiene product specialist Reckitt has revealed plans to sell a portfolio of home care brands that generate annual sales of nearly £2bn.

Its Essential Home division, which includes Air Wick, Calgon and Cillit Bang, has been deemed “no longer core” and the company said it “will consider all options to maximise shareholder value”.

Reckitt will also look to exit its Mead Johnson Nutrition business.

The changes are part of a £1bn restructuring plan to focus on its portfolio of “Powerbrands”, which are global leaders in their categories, such as Dettol, Vanish, Durex and Strepsils.

Reckitt’s site in Hull

Kris Licht, Reckitt chief executive, said: “Our core portfolio of market-leading Powerbrands and simpler, more effective organisation position us to better serve our consumers and customers.

“This will deliver attractive long-term value creation for Reckitt’s shareholders through our earnings model and cash returns.”

Reckitt’s restructuring will strip out management layers and is designed to reduce its fixed costs from 22% to 19% by the end of 2027. It also expects automation, and digital and generative AI opportunities to deliver significant savings.

The FTSE 100 giant has a major Science and Innovation Centre in Hull, the city where Isaac Reckitt started his business in 1840.