Reckitt Benckiser sells skincare business

Reckitt Benckiser has announced the sale of its prescription skincare business Hermal, following a major strategic review of the division.

The skincare-focused Hermal will be sold to the Spanish-based pharmaceutical company Laboratorios Almirall, Reckitt Benckiser has said, and follows more than 18 months of association.

Hermal came under the remit of Reckitt Benckiser following the acquisition of the Boots Healthcare International business in January 2006, with net revenues of the skincare arm standing at 58 million pounds by the end of the year.

Reckitt Benckiser expects the deal to be finalised in the third quarter of this year pending regulatory clearance from Germany.

The pharmaceutical company has said that the total operating profit of 14 million pounds seen from Hermal in 2006 represents just one per cent of the profits of Reckitt Benckiser.

Reckitt Benckiser was formed in 1999 following the merger of Reckitt and Colman plc and Benckiser NV, according to the firm’s website.