Haleon has agreed to sell its ChapStick lip balm brand to Suave Brands as part of a streamlining of its product portfolio valued at approximately $510 million. Under the agreement, the company will receive approximately $430 million in cash from the sale and an $80 million minority stake in Suave Brands, which is owned by PE firm Yellow Wood Partners.

Haleon was established as a joint venture between Pfizer and GSK in 2019. It underwent a spin-off and was floated on the UK stock exchange in 2022, with GSK and Pfizer retaining ownership stakes of 13.5% and 32% respectively. Haleon is actively working to optimise its portfolio, which includes well-known brands such as Centrum vitamins and Sensodyne toothpaste. The company plans to use the proceeds from the sale of ChapStick to reduce its existing debt. It is worth noting that the ChapStick brand generated sales of £112m in 2023. Suave Brands, which is owned by Yellow Wood Partners, is a portfolio of personal care products that it acquired from Unilever last year. This Boston-based PE group focuses on investing in the consumer goods sector, taking over unloved brands from larger companies. Notable acquisitions include Reckitt's Scholl foot care brand and, more recently, Unilever's Elida Beauty portfolio.