Consumer healthcare group Haleon on Thursday announced that it has entered into a binding agreement for the sale of the ChapStick brand to Suave Brands
Company, a company owned by American private equity firm Yellow Wood Partners.
The British consumer healthcare company has agreed to sell its lip balm brand to Suave for about $430 million in cash and a minority interest in the buyer,
valued at around $80 million.
Haleon, which was spun off from the GSK Group in July 2022, said that cash proceeds from the sale would be used to pay down debt.
ChapStick generated £112 million ($142.5 million) in revenue in 2023, said Haleon, adding that the sale is likely to close in the second quarter of 2024.
Brian McNamara, Chief Executive Officer, Haleon, said: "Today's announcement is consistent with Haleon being proactive in managing our portfolio, and being
rigorous and disciplined where there are opportunities for divestment.
"While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon.