Haleon to sell ChapStick

25 January 2024: Haleon plc, a global leader in consumer health, has entered into a binding agreement for the sale of the ChapStick brand to Suave Brands Company, a portfolio company of Yellow Wood Partners.

Under the terms of the transaction, Haleon will receive pre-tax cash proceeds of approximately $430 million, as well as a passive minority interest in the Suave Brands Company. At the time of entering into the binding agreement, this interest was valued at approximately $80 million. Cash proceeds from the sale will be used to pay down debt, underpinning our confidence to de-lever to net debt/Adjusted EBITDA of below 3x during 2024.

ChapStick generated £112 million in revenue for the FY ended 31 December 2023.

The sale, subject to the satisfaction of customary closing conditions, is expected to close in the second quarter of 2024.

Further detail on the transaction and its impact will be provided within our FY 2023 Results announcement on 29 February 2024.

Brian McNamara, Chief Executive Officer, Haleon, said: "Today's announcement is 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. We're confident the brand will continue to thrive under its new ownership."

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Enquiries

About ChapStick

ChapStick, the lip expert, makes it a priority to help people care for their lips all year round. Originally created in the early 1880s, ChapStick is known today as America's favourite lip balm. As part of Haleon, ChapStick offers a variety of products and fun flavours that promote happier and healthier lips. For more information, please visit www.chapstick.com.

About Haleon

Haleon (LSE / NYSE: HLN) is a global leader in consumer health, with a purpose to deliver better everyday health with humanity. Haleon's product portfolio spans five major categories - Oral Health, Pain Relief, Respiratory Health, Digestive Health and Other, and Vitamins, Minerals and Supplements (VMS). Its long-standing brands - such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, parodontax and Centrum - are built on trusted science, innovation and deep human understanding.

For more information, please visit www.haleon.com.