Reckitt to sell Essential Home business to Advent in $4.8 billion deal

July 18 (Reuters) – Consumer goods firm Reckitt (RKT.L),  said on Friday that it has agreed to sell its Essential Home business, maker of Air Wick fresheners, to private equity firm Advent International in a deal valued at $4.8 billion including debt.

Reckitt said it would retain a 30% stake in the unit.

Reuters exclusively reported last month that the two parties were in talks over a sale, with Reckitt likely to retain a minority stake in the unit, which also makes Cillit Bang cleaners.

Reckitt said it plans to return excess capital to shareholders, including a special dividend of about $2.2 billion and a share consolidation after the deal closes.

Essential Home business, which accounted for about 13% of Reckitt’s group revenue in the first quarter, has struggled for several quarters, with sales falling 7% in the first three months of the year.