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Reckitt Sells Russian Business Amid Exodus
24 Jul
Summary
- Reckitt Benckiser is selling its Russian hygiene business to Arnest Management.
- The sale continues Reckitt's withdrawal from Russia after the Ukraine invasion.
- A post-tax loss of approximately £175 million is expected from the deal.
Reckitt Benckiser has finalized an agreement to divest its Russian hygiene operations to Arnest Management, a domestic consumer goods producer. This decision aligns with Reckitt's broader strategy to reduce its footprint in Russia, a move that began in 2022.
The sale encompasses a Moscow production facility, local brand intellectual property, and the transfer of approximately 400 employees to Arnest. However, Reckitt will retain its global brand intellectual property and its Russian health business.
Due to Russian government regulations concerning foreign divestments, Reckitt anticipates limited proceeds from the sale. The company expects to incur a post-tax loss of roughly £175 million for the full year, with a substantial portion of this loss to be recognized in its first-half results.
