Haleon has entered into an agreement to sell its nicotine replacement therapy (NRT) business outside of the US to a unit of Indian pharmaceuticals company Dr Reddy’s Laboratories for a total consideration of £500m.
The move marks the latest in a string of disposals of its slower-growth brands since the consumer health group was spun off from GSK two years ago, helping it pay down debt and focus on higher-growth categories such as toothpaste and vitamins.
The unit being sold consists of brands such as Nicotinell, Nicabate, Habitrol and Thrive, which are available in gum, lozenge and patch forms across over 30 markets.
Haleon noted that divestment would allow it to exit the NRT category outside of the US and reduce complexity across the business, enabling “increased focus on strategic growth areas”. The NRT business being sold generated revenues of £217m and profits of £110m during the year to 31 December 2023.
The transaction is subject to regulatory approvals, with completion expected in the fourth quarter of this year.
Chief Executive Brian McNamara commented: “The divestment of Haleon’s NRT business outside of the US is a further example of Haleon being proactive in managing its portfolio and is consistent with our strategy as we implement change to become more agile and competitive.
“Whilst this business has great brands, these are not core for us, but I’m sure they will continue to flourish given the focus and capability of Dr Reddy’s.”
