Britain's Haleon said it had agreed to sell lip balm brand ChapStick to a company owned by private equity firm Yellow Wood Partners for around $430 million (€394.9 million) in cash and a stake valued at around $80 million (€73.5 million) in the buyer.
"Selling the brand allows us to simplify our business and pay down debt more quickly," McNamara added.
Yellow Wood Partners
Elida Beauty's portfolio comprises of more than 20 beauty and personal care brands including Q-Tips, Brut, Caress, Timotei and Tigi and the business generated about £800 million (€929.5 million) in revenues in 2022.
In November, Haleon missed market estimates for third-quarter revenue, as the world's largest consumer healthcare firm grappled with weak demand for its painkillers, digestive health and vitamin supplements in North America.
Quarterly adjusted operating profit grew 8.8% in constant currencies, compared with analysts' expectations of a 5.8% increase.
The company, however, stuck by its full-year profit and revenue forecasts but flagged a hit of about 3.5% on revenue and about 6% to 6.5% on adjusted operating profit due to the effect of currency swings.
Consumer health companies and their essential, daily-use products are typically the last to face a demand impact by an economic slowdown, but high interest rates and rental costs are turning consumers more frugal by the day.