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Reckitt’s plans for consumer goods group to sell its portfolio of cleaning products, including private equity, from Airwick risk falling amid recent market turmoil.
Those familiar with the issue say that Reckitt’s discussion with Private Equity Group over the sale of its home cleaning business will be slower and it is unclear whether the deal will be reached.
The business, which earns around £1.9 billion annually, attracted interest from acquisition companies such as Advent and Lone Star. But one of the suitors, Apollo Global, did not submit an offer at the final stage of the bid, one of the people said.
They warned that the contract could be reached and that no final decision had been made.
London-listed Reckitt warned in revenue for the first quarter of last month that the volatile market situation could delay sales of its cleaning product portfolio, but plans to leave the unit by the end of the year.
“We are encouraged by the interest we see in our business. …We recognize that market conditions can affect this time frame,” CEO Chris Licht told analysts.
The division also includes brands such as Cillit Bang and Dettol, and was expected to receive $4 billion to $5 billion offers from private equity bidders. However, at least one group has cut its offer between $3 billion and $4 billion, the Financial Times previously reported.
Last summer, Reckitt began a wide range of restructuring, including the sale of its important home units.
Business revenue fell 7% to £482 million in the first quarter of 2025, to £482 million compared to the expected 2% decline.
Reckitt’s shares have been trading almost flat so far this year, giving FTSE 100 Group A market capitalization of about £340 billion.
The global tariffs unleashed by US President Donald Trump are currently hampering transactions, including private equity investors who find it difficult to navigate high levels of volatility and uncertainty.
This forced some private equity groups to delay transactions and focus on managing existing portfolio companies. This is a shift from previous expectations for a boom in activity under the new US administration.
Reckitt declined to comment on the sales process. Advent, Apollo and Lone Star declined to comment.
