Reckitt sells China infant formula business
Reckitt Benckiser Group is selling its infant formula and child nutrition business in China to Primavera Capital Group for US$2.2 billion, the company says. It will retain an 8% shareholding in IFCN China and expects cash proceeds of US$1.3 billion.
The sale includes manufacturing plants in Nijmegen, the Netherlands and Guangzhou, China. It includes a royalty-free perpetual and exclusive license of the Mead Johnson and Enfa family of vrands in China.
Folliowing the sale, Reckitt will continue to own the Mead Johnson and Enfa brands globally and operate these in the rest of the world. Subject to closing conditions completion is expected in the second half of 2021.
“After a thorough review of IFCN China, we have found an excellent home for the business under the ownership of Primavera,” notes Reckitt CEO Laxman Narasimhan.