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Reckitt Benckiser Group agreed to sell its Chinese baby-formula business to Primavera Capital Group for $2.2 billion as the company seeks to exit from the struggling sector.. Reckitt will retain an 8 per cent stake in the unit and sees net cash proceeds of about $1.3 billion, which it plans to use to reduce debt, the company said in a statement on Saturday.

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Diaper manufacturers in China surpassed 31 billion units of capacity for production in 2017. The global market size of baby diaper companies was valued at over $54 billion, with a high concentration of consumption in regions of North America, Western Europe, and Asia alone holding more than half of the consumption of baby diapers globally.

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07-06-2021·Reckitt's Greater China infant formula business represents 6 percent of group sales, which were almost 14 billion pounds in 2020, up 11.8 percent year on year. On Saturday, Reckitt said the deal included the sale of its manufacturing plants at Nijmegen in the Netherlands, and in Guangzhou, China, and a royalty-free perpetual and exclusive license of the Mead Johnson and Enfa family of …

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