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Consumer Goods Group Reckitt warns that market conditions could affect sales of its critical residential cleaning products business after sales in the sector fell more than expected.
Divisions, including brands such as Cillit Bang and Air Wick, were expected to receive $4 billion to $5 billion offers from private equity bidders. However, last week, one company cut its offer between $3 billion and $4 billion, the Financial Times previously reported.
London-listed Reckitt said in quarterly results on Wednesday it intends to leave the division by the end of 2025.
Last summer, the company began a wide range of restructurings, including separating its toddler formula business Mead Johnson and selling Essential Home, which earns £1.9 billion annual revenue.
In the first quarter, the division’s revenue fell 7% to £482 million, compared to the expected 2% decline.
Group-like revenues rose 1.1%, exceeding analysts’ 1.4% forecast. Core Reckitt, a portfolio following the separation of Mead Johnson and Essential Home, revenues rose 3.1% ahead of expectations.
