GSK Spinoff Haleon Explores Potential $600 Million Sale of ChapStick Brand

Haleon Plc, the consumer health business spun out of GSK Plc last year, is exploring a divestiture of its ChapStick lip balm brand, according to people with knowledge of the matter.

(Bloomberg) — Haleon Plc, the consumer health business spun out of GSK Plc last year, is exploring a divestiture of its ChapStick lip balm brand, according to people with knowledge of the matter.

The company is working with advisers on a potential sale of the business that could fetch about $600 million, the people said, asking not to be identified discussing private information. Deliberations are at an early stage and the scope of the divestiture could change, they said.

A representative for Haleon declined to comment.

Haleon separated from the pharmaceutical giant in July. Its shares have risen 6% since then, giving it a market value of 30 billion pounds ($36 billion).

GSK still owns about 13% of Haleon’s shares, though Pfizer Inc. with a 32% stake is the company’s largest shareholder, according to data compiled by Bloomberg. 

Haleon owns brands such as Centrum, Emergen-C, Tums and Advil. It’s also in the early stages of studying large potential deals to bulk up its brand portfolio, which might include combining with Sanofi’s $30 billion consumer-health operations, Bloomberg News reported in January. 

–With assistance from Aaron Kirchfeld.

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