Haleon has agreed to sell lip balm brand Chapstick to private equity firm Yellow Wood for $430mn in a move to simplify its portfolio.
The London-listed company, which was spun off from pharmaceutical giant GSK in 2022, said cash proceeds from the sale would be used to pay down debt.
Yellow Wood Partners specialises in consumer industry and has previously acquired Unilever’s low-cost shampoo and moisturiser brand, Suave, in North America, as well as footcare brand Scholl from Reckitt.
Haleon’s chief executive Brian McNamara, said: “While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon,” adding that the sale would allow the company to simplify the business and pay debt down more quickly.