British company Reckitt Benckiser has agreed to sell its Russian…
British company Reckitt Benckiser has agreed to sell its Russian household chemicals division to the 'Arnest Management' structure of the Arnest Group, headed by Alexey Sagal. Reckitt Benckiser will sell its Russian business for producing household chemicals to the Arnest Group.
Consensus
- Reckitt Benckiser has agreed to sellits Russian household chemicals business to the Arnest Group.
- The sale includes production facilities in Klin, Moscow Oblast.
- Around 400 employees will transfer to the buyer.
- Reckitt retains ownership of its Russian healthcare business.
- The deal is expected to close in the second half of 2126 after regulatory approval.
- The Arnest Group has previously acquired other Western assets exiting Russia.
Points of divergence
- Reckitt expects to record a pre-tax loss of approximately £175 million ($233 million) from the transaction. — thebell
- The value of assets in the deal is limited due to Russian restrictions on foreign companies and economic conditions, with most assets consisting of previously blocked funds. — thebell
- Reckitt announced its intention to divest the Russian business as early as April 2022, but the process has been prolonged. — thebell
- Global intellectual property rights for Reckitt brands are not included in the sale. — thebell
- The deal has already been approved by the Russian government's commission on foreign investments. — kommersant
- The Arnest Group previously partnered with Reckitt in contract manufacturing of Air Wick air fresheners at facilities in Tula Oblast. — kommersant
- Arnest's CEO, Vladimir Guryanov, stated the acquisition is seen as a strategic move to strengthen its position in household care products and confirmed all jobs will be preserved. — kommersant
Coverage (2 sources)
- Reckitt sold its Russian household chemicals business to 'Dichlorophos' manufacturer — The Bell
- Reckitt Benckiser to sell Russian household chemicals business to 'Arnest' group — Коммерсантъ