Reckitt to sell China baby formula business to Primavera Capital for $2.2 billion

© Reuters.

(Reuters) – British consumer goods maker Reckitt Benckiser Group Plc (LON:) said on Saturday it was selling its infant formula and child nutrition (IFCN) business in China to investment firm Primavera Capital Group for an enterprise value of $2.2 billion.

The Lysol disinfectant and Dettol soap maker will retain an 8% stake in IFCN China and anticipates net cash proceeds to be about $1.3 billion, it said in an emailed statement.

As a result of the sale, Reckitt said it expects to incur a net loss of 2.5 billion pounds ($3.5 billion), principally relating to the re-measurement of goodwill and intangible assets for IFCN China, it said.

($1 = 0.7065 pounds)

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