Consumer healthcare group Haleon has agreed to sell its ChapStick lip balm brand in a deal worth around $510m.
Haleon said the sale to Suave Brands Company, owned by US private equity firm Yellow Wood Partners, will see it receive about $430m, plus a minority stake in Suave valued at around $80m.
The cash will be used to pay down debt, according to Haleon.
Haleon - which was spun off from drug giant GSK in 2022 - said the deal was part of an ongoing plan to simplify the business.
It also owns well-known household brands such as Sensodyne toothpaste, Panadol pain relief and Centrum vitamins.
Brian McNamara, chief executive of Haleon, said the ChapStick sale was "consistent with Haleon being proactive in managing our portfolio, and being rigorous and disciplined where there are opportunities for divestment".
"While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon. Selling the brand allows us to simplify our business and pay down debt more quickly," he added.
ChapStick - which was originally created in America in the early 1880s - made global sales of £112m in 2023.
The sale is expected to complete in the second quarter of the year.
