Karo Pharma has entered into a put option agreement pursuant to which it may acquire the dermatology brand E45 from Reckitt for total consideration of £200m. Subject to the execution of the put option by Reckitt, the acquisition of the E45 brand will be effected through the put option agreement. The Transaction is expected to close in the second quarter of 2022.

The acquisition would scale up Karo’s operations in the UK, consistent with Karo’s strategy of expanding commercial operations in major European markets. Further, the Transaction would strengthen Karo’s position in the dermatology category and would add the market leading dermatology brand in the UK and South Africa to Karo’s portfolio.

“With its proven, dermatological expertise and unrivalled UK leadership position in skin health, E45 is an exciting addition to our Karo brand portfolio. E45 deepens and scales our European presence in dermatology, synergising strongly with our Locobase, Alfason and Decubal brands. We see compelling opportunities to unlock value; enabling E45’s shift from off-line to omnichannel and better serving consumers with a winning pipeline of innovation,” says Anna Hale, CMO of Karo.