Lone Star Funds, Advent International, and Apollo Global Management are the frontrunners to acquire Reckitt Benckiser’s homecare portfolio, as reported by Bloomberg. The consumer goods company aims to sell this division, which includes popular brands like Air Wick and Cillit Bang, potentially fetching up to $6.3 billion.

Reckitt announced its decision to divest non-core homecare brands in July 2023, attracting significant interest from private equity firms. The portfolio is appealing due to its consistent cash flows and global market presence. Each of the shortlisted bidders has substantial experience in the consumer and household products sector, suggesting they will submit competitive offers.

Apollo Global Management is recognized for its expertise in large-scale consumer acquisitions and has successfully scaled legacy brands in the past. Advent International has been actively increasing its investments in the consumer and retail sectors, positioning itself as a strong strategic buyer. Lone Star Funds, known for its turnaround capabilities, may see an opportunity to restructure and enhance operations within the homecare segment.

The estimated valuation of £4-5 billion ($5-6.3 billion) reflects the growing interest from private equity in branded consumer products, particularly those with established market presence and pricing power. The acquisition could involve leveraged financing, allowing firms to pursue cost efficiencies and operational synergies after the purchase.

As due diligence progresses, final bids from Lone Star, Advent, and Apollo are anticipated in the coming months.