Reckitt Benckiser (RB.) is the latest company to announce plans to float part of its business. The consumer goods group will spin off its pharmaceuticals division - which specialises in addiction control products - via an IPO on the London Stock Exchange before Christmas. Valuations of the soon-to-be-standalone pharma company - to be named Indivior - range from £1bn to £4bn. Consensus forecasts, however, expect a market capitalisation of approximately £2bn. The go-ahead for the float is still subject to a shareholder meeting and vote in early December.
RB is not the only conglomerate looking to divide and conquer. Last month, pharma giant GlaxoSmithKline (GSK) said it would consider floating a minority stake in HIV business ViiV Healthcare. In similar fashion, cigarette behemoth Imperial Tobacco (IMT) floated a stake in its Logista division on the Spanish stock exchange this year and Procter and Gamble (US:PG) is selling its Duracell battery business to Warren Buffett's Berkshire Hathaway.
RB, P&G and Imperial have all found ways to offload divisions they don't consider 'core' to their business. P&G said it wanted to refocus the company on household products and RB has followed suit. It claims the float of Indivior will allow it to concentrate on core brands such as Dettol disinfectant.