Slaughter and May and Kirkland & Ellis have picked up lead advisory roles as British multinational Reckitt sells its Essential Home business to Advent International for an enterprise value of up to $4.8bn (£3.56bn).
The deal sees Advent buying a 70% stake in the business, which includes leading global brands such as Cillit Bang, Calgon and Air Wick as well as around 75 brands in around dozens of markets around the world, with Reckitt retaining an interest in Essential Home through a 30% equity stake in Advent’s acquisition vehicle.
Slaughters corporate and M&A partners James Cook, Simon Tysoe and Richard Smith are leading the firm’s team for regular client Reckitt, working alongside partners including competition partner Lisa Wright and finance partner Kevin Howes.
Kirkland is advising Advent International, with private equity partner Adrian Maguire leading the team alongside technology and IP partners Andre Duminy and Joanna Thomson and debt finance partners Christopher Shield, Thomas Raftery and Leon Daoud.
Last year Maguire led a team that advised Advent on the sale of UK parcel delivery company Evri to Apollo in a deal worth £2.7bn, with Raftery and Daoud also involved.
The carve-out of Essential Home is a key part of Reckitt’s plan to reshape its business into a more efficient, consumer health and hygiene-focused company.
Latham & Watkins have advised the arrangers financing the deal, with a team led by London finance partners Joydeep Choudhuri and Danielle Brown and London tax partners Aoife McCabe and Karl Mah.
Reckitt’s interest in six manufacturing plants will also transfer to Advent when the deal completes, which is expected to happen on 31 December this year, subject to regulatory approvals. Essential Home will also own the Mortein brand in North America.
