Pfizer completes Haleon exit with US$3.3B sale
This strategic decision is part of Pfizer’s broader effort to streamline its operations and focus on high-growth areas such as oncology and rare diseases.
USA—Pfizer has finalized its exit from Haleon, a leading consumer healthcare company, by selling its remaining 7.3% stake for approximately £2.55 billion (US$3.3 billion).
This move marks the culmination of a years-long separation process from GSK’s former Consumer Healthcare business, which was spun off as Haleon in 2022.
The transaction involved the sale of 662 million ordinary shares to institutional investors through an expedited book-building process.
Haleon also repurchased £170 million (US$219 million) worth of shares directly from Pfizer.
This strategic decision is part of Pfizer’s broader effort to streamline its operations and focus on high-growth areas such as oncology and rare diseases.
The company has been under pressure from activist investors like Starboard Value to divest non-core assets and improve performance.
The sale of Pfizer’s stake in Haleon was managed by a consortium of prominent financial institutions, including BofA Securities, Citigroup Global Markets, and Goldman Sachs International, who acted as joint global coordinators and bookrunners.
Other financial institutions like Barclays and Deutsche Numis were also involved as joint bookrunners, with additional support from JP Morgan, Morgan Stanley, RBC Capital Markets, and Independence Point Securities as co-managers.
Haleon was formed in 2019 through a joint venture between Pfizer and GSK, combining their consumer healthcare businesses.
The company is known for popular brands such as Sensodyne, Advil, and Panadol.
Following its listing on the London Stock Exchange in 2022, both Pfizer and GSK gradually reduced their stakes in Haleon.
GSK fully exited its investment in May 2024, and now Pfizer has completed its divestment.
As a result of Pfizer’s sale, BlackRock Management Ltd, a subsidiary of BlackRock, is set to become Haleon’s largest shareholder, holding more than a 5% stake.
This change in ownership structure reflects the evolving landscape of the consumer healthcare sector, where companies are increasingly focusing on specialized therapeutic areas.
Pfizer will retain all net proceeds from the sale, which are contingent on customary closing conditions.
Meanwhile, Haleon’s share buyback of £170 million (US$219 million) from Pfizer is part of its broader plan to repurchase up to £500 million (US$646 million) worth of shares in 2025, to support liquidity and ensure a smooth transition in ownership.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and beyond. Also, follow us on our WhatsApp channel for updates.
Be the first to leave a comment