Consumer health giant Haleon has entered into an agreement to sell its ChapStick brand to Suave Brands Company, an operation owned by US private equity firm Yellow Wood Partners.
Under the terms of the deal, Haleon will receive cash proceeds of approximately $430m, as well as a passive minority interest in the Suave Brands Company. The company stated that proceeds from the sale, which is expected to close in the second quarter, would be used to pay down debt.
ChapStick generated revenues of £112m in the year to 31 December 2023.
“Today’s announcement is consistent with Haleon being proactive in managing our portfolio, and being rigorous and disciplined where there are opportunities for divestment,” said Brian McNamara, Chief Executive of Haleon.
“While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon. Selling the brand allows us to simplify our business and pay down debt more quickly. We’re confident the brand will continue to thrive under its new ownership.”
In December last year, Unilever struck a deal to sell Elida Beauty, a division that covered several of its non-core beauty and personal care brands, to Yellow Wood Partners.
