Reckitt Benckiser case study

We advised Reckitt Benckiser Group on the sale of its Infant Formula and Child Nutrition Business in China to Primavera Capital Group, a China-based private equity company, for over $2 billion.

The sale marked another step in Reckitt’s long-term growth strategy.

The transaction was structured as a sale of the entirety of Reckitt’s IFCN business in China, including its manufacturing plants in Nijmegen, the Netherlands, and Guangzhou, China. Reckitt retained a 8% shareholding in the business.

Reckitt’s CEO has described the sale as a “major step forward” in Reckitt’s strategy to “rejuvenate sustainable growth”.

Intricate IP and commercial arrangements

A perpetual exclusive licence in China for the Mead Johnson and Enfa family of brands, while protecting their value for Reckitt in the rest of the world; a complex solution that relied on our institutional knowledge and developed expertise; and
Bespoke commercial contracts.

How did we add value?

Expert guidance through a complex and evolving regulatory landscape in China in the infant nutrition sector

Bespoke deal structure across multiple jurisdictions, including arrangements for Reckitt’s retained minority shareholding

Confident management of a broad auction with a tight timetable

Seamless global support spanning China, Hong Kong, Singapore, Netherlands and the US

Auction process

Simultaneous engagement with multiple bidders
Maintained competitive tension in a tight timeframe

deal value

in excess of $2 billion

pensions and employment

Extensive employee transfer and global consultation obligations