25 January 2024 , 12:04
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Haleon, a consumer healthcare group, has decided to sell off its ChapStick lip balm brand in a deal worth around £401 million.
Haleon says that the sale to US firm, Suave Brands Company, will see them receive about £338 million and a small stake in Suave valued at round about £63 million. This money is set to be used to pay off debt, Haleon said. They explained this deal was a part of their ongoing plan to make their business operations simpler.
The company, separated from medical giant GSK in 2022, also has famous household brands like Sensodyne toothpaste, Panadol for pain relief, and Centrum vitamins.
Brian McNamara, the CEO of Haleon, described the sale of ChapStick as a chance for Haleon to proactively manage its portfolio. He stated: "While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon."
He continued: "Selling the brand allows us to simplify our business and pay down debt more quickly." The ChapStick sale is expected to be completed later this year. ChapStick, first made in the US in the 1880s, had global sales of roughly £112 million in 2023.
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