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Reckitt to sell its infant formula business in China for US$2.2 billion to Primavera Capital Group

Mount Equity Group Tokyo, Japan > News > Markets > Reckitt to sell its infant formula business in China for US$2.2 billion to Primavera Capital Group

SLOUGH, England, June 6, 2021 /PRNewswire/ — Reckitt Benckiser Group plc (“Reckitt”) announces that it has entered into a definitive agreement to sell its Infant Formula and Child Nutrition business in China1 (“IFCN China”) to Primavera Capital Group (“Primavera”) for an implied enterprise value of US$2.2 billion.  Reckitt will retain a shareholding in IFCN China of 8%2 and anticipates net cash proceeds to be approximately US$1.3 billion3.

The transaction follows a comprehensive strategic review of IFCN China announced in February 2021.  The transaction is structured as a sale of the entirety of IFCN China, including the manufacturing plants in Nijmegen, the Netherlands and Guangzhou, China. It includes a royalty-free perpetual and exclusive license of the Mead Johnson and Enfa family of brands4 in China.  Following completion of the transaction, Reckitt will continue to own the Mead Johnson and Enfa family of brands globally and will operate those brands in the rest of the world. 

The transaction is subject to consultation with Reckitt’s works council in the Netherlands, which Reckitt will now initiate. Reckitt will also engage with its other relevant employee unions in relation to the transaction. Subject to the Netherlands works council consultation and the satisfaction of customary closing conditions, completion is expected