KKR is close to acquiring consumer healthcare group Karo Healthcare in a deal valued at more than €2.5bn, as the firm expands its exposure to resilient, cash-generating consumer health assets.

The deal would mark a significant exit for EQT, which has owned Karo since 2019. KKR reportedly outbid several rival private equity firms during the sale process, which EQT initiated last year.

Stockholm-based Karo operates in over 90 countries and generates annual revenue exceeding €500m. Its portfolio includes widely recognised brands such as moisturiser E45—acquired from Reckitt Benckiser in 2021—alongside stretch mark cream Remescar, vitamin brand Nutravita, and athlete’s foot cream Lamisil, acquired from Haleon in 2023.

An announcement on the transaction could come as early as this week, though sources caution that the final terms are still being negotiated.

The move comes despite a more cautious dealmaking climate, triggered in part by tariffs introduced by President Donald Trump. Nevertheless, private equity appetite for consumer health assets remains strong, given their stable cash flows and defensive characteristics, particularly during macroeconomic uncertainty.

KKR, which manages more than $600bn in assets, already holds investments in other branded consumer businesses such as Flora Food Group and Wella.

The potential acquisition of Karo would further position KKR in the high-margin, over-the-counter healthcare segment—an area increasingly favoured by private capital for its long-term growth profile and reliable performance across market cycles.