Haleon offloads ChapStick brand for $430m

Consumer health group Haleon, the company behind Sensodyne toothpaste, Panadol and Advil painkillers, has announced it is selling the ChapStick lip balm brand for $430m.

The sale, to Suave Brands Company, a portfolio company of Yellow Wood Partners, will also see Haleon receive a "passive minority interest" in the purchasing entity.

Offloading the ChapStick brand, which generated £112m in revenue for Haleon in 2023, was first mooted in February 2023 which was estimated at $600m according to press reports at the time.

Haleon's chief executive Brian McNamara said ChapStick was no longer a "core focus" for the company and the sale is "consistent with Haleon being proactive in managing our portfolio, and being rigorous and disciplined where there are opportunities for divestment".

Haleon intends to use cash proceeds from the sale to pay down debt, as it aims to de-lever to a net debt-to-adjusted EBITDA multiple of below three during 2024.

"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."