Latham Advises on Financing for Advent’s Acquisition of Majority Stake in Reckitt’s Essential Home Portfolio

Latham & Watkins has advised the arrangers on the financing for Advent’s agreement to invest in Reckitt’s Essential Home portfolio (Essential Home), whereby Advent will acquire a 70% stake to facilitate the company’s accelerated growth and innovation over the years to come as a standalone business. The carve-out of Essential Home will create a dedicated global home care platform with an iconic portfolio of leading brands — including Air Wick, Calgon, Woolite, Cillit Bang, and SBP.

The transaction values Essential Home at an enterprise value of up to US$4.8 billion (including up to US$1.3 billion of contingent and deferred consideration). As part of the transaction, Reckitt will continue to support Essential Home by retaining a significant minority interest of 30%. The transaction remains subject to customary closing conditions and regulatory approvals.

The Latham team was led by London finance partners Joydeep Choudhuri and Danielle Brown, with associates Andreas Georgiades and Pamela Ng. Advice on tax matters was provided by London partners Aoife McCabe and Karl Mah, with associate Ines Kilkelly and Lina Le Roux.