Haleon to Sell ChapStick Brand to Suave Brands for $510 Million to Streamline Portfolio

Intelligent Finance APP learned that Haleon (HLN.US), one of the largest consumer health companies globally, has agreed to sell its ChapStick brand lip balm to Suave Brands for approximately $510 million, aiming to streamline its product portfolio.

Haleon said in a statement on Thursday that it would receive approximately $430 million in cash from the sale. As part of the deal, the company will also acquire a minority stake in Suave Brands, held by private equity firm Yellow Wood Partners, valued at about $80 million.

Haleon, which was spun off from pharmaceutical manufacturer GSK (GSK.US) about 18 months ago, is working to reduce its product portfolio, which includes Centrum vitamins and Sensodyne toothpaste. The company plans to use the proceeds to pay down debt.

CEO Brian McNamara stated: "While ChapStick is a great brand loved by consumers around the world, it is not part of our core business." It is reported that ChapStick generated £112 million ($142 million) in revenue last year.