Reckitt Benckiser's $5B Essential Home Divestment Falters As Bids Miss Mark: Report

Reckitt Benckiser's (RBGLY) effort to sell its Essential Home business has reportedly hit a bump.

According to a Reuters report, the bids received for the business, which includes Air Wick fresheners and Cillit Bang cleaners, were below the company's hopes of over 4 billion pounds ($5.4 billion).

Sources familiar with the matter told Reuters that Reckitt would continue to pursue the sale and that at least the private equity firm Advent was still in talks for the deal.

U.S. President Donald Trump's shifting trade policies have slowed deal-making, with businesses and investors growing uncertain of the outlook and, therefore, pausing some mergers and acquisitions until more clarity emerges.

UK's Reckitt, which also sells Durex condoms and Dettol disinfectant, said mid-last year it was looking to offload a portfolio of homecare brands by the end of 2025.

In April, the company said it was "continuing to progress" the sale of the Essential Home business but noted that market conditions might impact the timeframe.

The development comes amid a period of pressure for staple goods companies. While typically resilient to economic downturns, these companies face increasing competition from startup brands in several categories.

Meanwhile, Reckitt is grappling with sluggish sales in Europe and North America. Among other revival efforts, it is focusing on its high-margin health and hygiene brands and streamlining operations.

The company's U.S. over-the-counter (OTC) shares are up 14% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.