We are delighted to have advised Haleon on the carve-out of the nicotine replacement therapy business.
Haleon was formed in 2022 as part of the demerger of GSK’s and Pfizer’s merged consumer healthcare business. The divestment allows Haleon to exit the nicotine replacement therapy (NRT) category outside of the US and will reduce complexity across the business allowing increased focus on strategic growth areas. The NRT business outside the US is a leader in its category, with a strong portfolio of international and local brands including Nicotinell, Nicabate, Habitrol and Thrive.
An agreement to divest the brand was signed with Dr. Reddy’s Laboratories SA (DRL), a global pharmaceutical company headquartered in Hyderabad (India), in June 2024, for a total consideration of GBP 500m, with an upfront cash payment of £458 million and performance-based contingent payments of up to £42 million, payable in 2025 and 2026. The transaction completed on 30 September 2024.
Having successfully advised Haleon on the divestment of the Lamisil brand (completed 31 October 23) and the divestment of Chapstick (completed 31 May 2024), we were engaged by Haleon over a six-month period to support the planning and execution of the international separation of its ex-US NRT business. We worked closely with Haleon and DRL stakeholders, as well as other advisors supporting both parties
