Reckitt Benkiser to acquire global rights to K-Y brand

10th Mar 2014 08:37

Reckitt Benckiser Group (RB) has signed a definitive agreement to acquire the global rights to the K-Y brand, which develops intimate lubricant products. The rights are being bought from McNEIL-PPC, a subsidiary of Johnson & Johnson, to enhance RB's sexual wellbeing offering. It is expected to "transform" the category in both the US and Brazil, where it will be the subject of the company's innovation, brand equity investment and go-to-market capabilities. Net sales of K-Y in 2013 were greater than $100m. It is sold in over 50 countries around the world, with the US, Canada and Brazil accounting for the majority of 2013 sales.The transaction is subject to customary regulatory approvals and is expected to close in mid-2014. No employees or fixed assets are included in the purchase."The brand's clinical and professional heritage is unique in the category and is the underpinning to its trusted and professionally endorsed position," RB said. "It has been the historical innovator in the category and was the brand that built the female intimacy enhancement segment in lubricants." Interestingly, K-Y started as a prescription medical device in 1917 and switched to over-the-counter in 1980. NR