Consumer goods group Haleon has agreed to sell its lip balm brand ChapStick in a deal valued at around $510 million (£401 million).
Haleon said the sale to Suave Brands Company, owned by US private equity firm Yellow Wood Partners, would see the company receive around $430 million (£338 million), as well as a minority stake in Suave worth around $80 million (£63 million).
According to Haleon, the money will be used to pay off debts.
Haleon – which was spun off from pharmaceutical giant GSK in 2022 – said the deal was part of an ongoing plan to simplify the business.
The company also owns well-known household brands such as Sensodyne toothpaste, Panadol painkiller and Centrum vitamins.
Brian McNamara, Haleon’s chief executive officer, said the sale of ChapStick was “consistent with Haleon’s proactive portfolio management and our consistent and disciplined approach to divestment opportunities.”
He added: “While ChapStick is a great brand that is loved by consumers around the world, it is not the focus for Haleon.
“Selling the brand will enable us to simplify our business and reduce debt faster.”
ChapStick – originally developed in America in the early 1880s – had global sales of £112 million in 2023.
The sale is expected to be completed in the second quarter of the year.
