Reckitt Benckiser Group PLC (LSE:RKT) shares jumped 2% after it promised to return $2.2 billion (£1.64 billion) to shareholders from selling off brands such as Air Wick, Calgon and Cillit Bang in a private equity deal.
A deal to offload the FTSE 100 group's Essential Home was agreed with US firm Advent International at a value of $4.8 billion, though it is retaining a 30% stake.
Of the consideration that Advent is paying for its 70% stake, $1.3 billion is deferred, based on performance this year and certain return thresholds being achieved.
Reckitt said it would return "excess capital" to shareholders most likely via a special dividend tied to a share consolidation following completion of the deal, which is expected by the end of 2025.
The deal will see ownership of over 80 brands change hands, also including Resolve, Sole and Easy-Off, as well as the Mortein brand in North America, Europe and LATAM.
Essential Home generated around £2 billion of net revenue in 2024, around 14% of the group total, with adjusted operating profit of £490 million.
In the first quarter of 2025, like-for-like net revenue declined 7%.
The shares climbed 98p to 5,080p in early trading on Friday.