Reckitt Benckiser to sell China baby-formula business in $2.2-bn deal

The sale marks the end of Reckitt's venture into the baby-formula business started just four years ago

Reckitt Benckiser Group agreed to sell its Chinese baby-formula business to Primavera Capital Group for $2.2 billion as the company seeks to exit from the struggling sector.
 
Reckitt will retain an 8 per cent stake in the unit and sees net cash proceeds of about $1.3 billion, which it plans to use to reduce debt, the company said in a statement on Saturday. The household-products maker, based in Slough in the UK, expects to record a net loss of about £2.5 billion ($3.5 billion) related to the sale, primarily on the remeasurement of goodwill and intangible assets.
 
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