(LONDON, UK) – British consumer goods company Reckitt Benckiser has agreed to sell its Russian hygiene business to local manufacturer Arnest Management, pressing ahead with plans to reduce its presence in Russia first announced in 2022.
The sale covers a production facility in Moscow, intellectual property rights for local brands and the transfer of around 400 employees to Arnest Management. Intellectual property rights for global brands are not included in the transaction. Reckitt will retain its Russian healthcare business.
Reckitt said it expects to book a post tax loss of approximately £175 million (around $233 million or €213 million) from the deal. About £125 million of this amount will be reflected in the financial results for the first half, which the company plans to publish on 29 July.
The company added that the transaction will have no material impact on adjusted operating profit or adjusted earnings per share.
Reckitt noted that restrictions imposed by Russian authorities on the movement of capital abroad mean the company will receive only limited proceeds from the sale. Western firms exiting Russia have faced similar constraints, including mandatory discounts on asset sales and exit taxes levied by the Russian government.
The move marks another step in Reckitt’s plan to leave the Russian market, first disclosed in 2022. A number of major Western companies faced criticism at the time for continuing operations in Russia following the full scale invasion of Ukraine.
Reckitt owns a portfolio of well known global brands including Nurofen, Finish, Veet, Air Wick, Calgon, Cillit Bang, Durex, Gaviscon, Strepsils and Vanish. The company has been restructuring its international operations amid a broader re evaluation of its presence in markets affected by geopolitical tensions.
The sale to Arnest Management, a local consumer goods producer, follows a pattern of Russian entities acquiring assets from departing Western firms. Business activity in Russia has fallen to levels last seen in spring 2022, according to recent intelligence assessments, as sanctions and corporate exits continue to reshape the country’s consumer market.