Reckitt Benckiser has agreed to sell its Essential Home division, including household names Air Wick, Calgon, Woolite and Cillit Bang, to Advent International in a deal worth $4.8bn (£3.6bn).

The move marks a major step in the household goods giant’s drive to simplify its business and focus on 11 core Powerbrands in high-growth, high-margin categories.

Essential Home accounted for £2bn of net revenue in 2024, roughly 14% of Reckitt’s total, but it is understood it will now form a standalone platform under Advent’s ownership.

However, Reckitt will still retain a 30% equity stake in the business as part of the deal, which is expected to complete by the end of 2025.

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“The divestment of Essential Home represents a significant step forward in unlocking the substantial value in our business,” said Reckitt chief executive Kris Licht.

“This moves Reckitt towards becoming a simpler, more effective world-class consumer health and hygiene company and it will enable us to focus on a core portfolio of high-growth, high-margin Powerbrands.

“Essential Home will benefit from Advent’s new majority ownership with our retained minority stake in Essential Home providing a potential long-term value enhancement opportunity for Reckitt.”

Advent managing partner Ranjan Sen added the carve-out presented “a unique opportunity” to build a focused platform of home care brands.

Earlier this year, the FMCG giant posted that for the quarter ended 31 March 2025, it’s group sales edged up 1.1% to £3.6bn, while core sales increased 3.1% to £2.6bn.