Lone Star Funds, Advent International, and Apollo Global Management emerged as the leading contenders to acquire Reckitt Benckiser’s homecare portfolio, as the UK-based consumer goods giant looks to divest its non-core brands in a deal that could reach $6.3bn.

The homecare division, which includes Air Wick air fresheners and Cillit Bang cleaners, has attracted significant private equity interest due to its stable cash flows and global brand recognition. Reckitt announced its intent to offload the business in July 2023, positioning the sale as a strategic move to sharpen its focus on core product lines.

The shortlisted bidders bring extensive experience in consumer and household goods investments. Apollo Global Management has a history of acquiring, restructuring, and scaling major consumer brands. Advent International has been expanding aggressively in the consumer and retail space, making it a strong strategic buyer. Lone Star Funds, known for turnaround investments, could focus on optimising and restructuring the business post-acquisition.

The estimated valuation of between $5bn and $6.3bn reflects private equity’s growing appetite for branded consumer products, particularly those with strong market penetration and pricing power. The deal is expected to involve leveraged financing, as bidders look to drive cost efficiencies and operational synergies after securing the asset.

With due diligence ongoing, final bids from Lone Star, Advent, and Apollo are expected in the coming months. The outcome of the process will shape Reckitt’s corporate strategy while reinforcing private equity’s role in reshaping the global consumer goods landscape.