RB CEO’ dismisses talk that home hygiene division could be spun off; not ruling out acquisitions
Reckitt Benckiser Group [LON:RB] Chief Executive Rakesh Kapoor has dismissed talk that the UK-based consumer products group’s plans to separate its home hygiene brands from its health products would facilitate a spin-off of the home hygiene arm, The Times reported.
Kapoor was speaking as Reckitt released its 3Q17 trading update, at which the company announced plans to split the home hygiene and health products operations. The CEO said that the two businesses would be separate but still be part of the group.
The item noted that Reckitt has previously spun-off peripheral businesses.
The Daily Mail reported that a comment from Kapoor had prompted the spin-off speculation. Kapoor said he wants the company to secure a leading position internationally in the consumer health sector and that Reckitt had not realised the extent of its opportunity in the sector, according to the newspaper.
Spinning off the home hygiene arm could provide funds for Reckitt to acquire Pfizer’s [NYSE:PFE] consumer health division, the item said.
Reckitt said it is not ruling out making acquisitions, the newspaper added.
Pfizer disclosed last week that it plans to sell its consumer health division, the report continued, adding that the division could sell for up to GBP 11bn (EUR 12.30bn).
Reckitt Benckiser’s market capitalisation stood at GBP 48.24bn at the close of trading in London on Wednesday.