New York/London – Consumer‑goods giant Colgate‑Palmolive is weighing a divestiture of a handful of its mass‑market personal care brands, sources familiar with the matter told Reuters. The brands under consideration include Softsoap, Irish Spring and Speed Stick.
Deal structure and financial outlook
The company has engaged investment bank Goldman Sachs to assist with the process. While the exact timeline remains unclear, the sources said the transaction could fetch over $1 billion. Colgate‑Palmolive and Goldman Sachs declined to comment on the discussions.
Strategic context
Colgate’s personal care unit, which encompasses deodorants, bar and liquid soaps, shower gels and skin‑care products, currently accounts for roughly 17 % of the company’s net sales – about $3.5 billion in 2025. By shedding a few non‑core brands, the firm aims to concentrate resources on its strongest lines, a strategy echoed across the consumer‑goods sector.
Industry peers are pursuing similar portfolio reshapes. Earlier this year, Unilever agreed to sell its food business to McCormick for $45 billion and spun off its Magnum ice‑cream unit after offloading more than 20 beauty and personal‑care brands to Yellow Wood Partners in 2024. Nestlé also announced the sale of its vitamins business to Yellow Wood for roughly $1 billion, following a recent divestiture of a stake in its water and premium‑beverage segment to Platinum Equity.
Company performance and leadership comments
Colgate‑Palmolive, headquartered in New York, has a market capitalization of about $70 billion, with its stock up roughly 11 % year‑to‑date according to LSEG data. In its most recent quarterly earnings, net sales rose 4.9 %, though organic sales in the North American market fell 3 %.
CEO Noel Wallace told the Barclays Consumer Conference that the company faces intensifying competition in North America and that a “long‑term turnaround” is needed to get the business where it belongs. The proposed divestiture is part of that broader turnaround plan.
Implications for consumers and the market
Should the sale proceed, the remaining personal‑care portfolio will be more tightly focused on high‑margin, high‑growth items, potentially strengthening Colgate‑Palmolive’s ability to innovate and compete. The transaction also underscores a broader industry trend of consolidating around core brands to better navigate tariffs, rising energy costs and financially pressured consumers.
While the exact buyers for Softsoap, Irish Spring and Speed Stick have not been identified, the involvement of Goldman Sachs suggests a competitive auction process that could attract a range of strategic and financial investors.
Colgate‑Palmolive’s move reflects a decisive step toward streamlining its brand portfolio, a strategy that analysts expect will support long‑term profitability and shareholder value.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
