Iconic lip balm brand, ChapStick has been sold in a deal worth over US$510 million.
British owner, Haleon said it has agreed to sell ChapStick to Suave Brands Company, owned by private equity firm Yellow Wood Partners, for around $430 million in cash and a stake valued at around $80 million in the buyer, according to reports by Business of Fashion.
"While ChapStick is a great brand, much loved by consumers around the world, it is not a core focus for Haleon," shared Haleon chief executive officer, Brian McNamara.
"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."
ChapStick, which was created in the early 1880s, generated £112m in sales last year.
The deal is set to close in the second quarter of 2024.
Image credit: ChapStick.