Supplier News Breaks Archives
Reckitt Benckiser to acquire K-Y brand
March 10th, 2014
SLOUGH, England – Reckitt Benckiser Group plc has signed a definitive agreement to acquire the global rights to the K-Y personal lubricant brand from McNeil-PPC Inc., a Johnson & Johnson subsidiary.
Financial terms of the agreement weren't disclosed. Reckitt Benckiser said Monday that the purchase doesn't include employees or fixed assets.
The transaction is slated to close in the middle of this year, pending customary regulatory approvals and closing conditions.
Reckitt Benckiser said its Durex sexual wellness brand will sit alongside K-Y on store shelves, creating a strong portfolio of brands in the sexual well-being category. K-Y offers liquid and jelly personal lubricants, including sexual enhancement varieties, while the Durex line includes condoms, lubricants and vibrators.
K-Y's net sales last year topped $100 million, and the brand is sold in more than 50 countries, with the United States, Canada and Brazil accounting for most of its 2013 sales.
Reckitt Benckiser noted that the addition of K-Y will "immediately transform" its intimacy product offering in the United States and Brazil. The company added that K-Y will benefit from Reckitt Benckiser's strong innovation, brand equity investment and go-to-market capabilities.