Russian consumer goods manufacturer Arnest has agreed to acquire the Russian business of British household products company Reckitt, extending a string of acquisitions that has transformed the regional aerosol producer into one of the biggest buyers of assets sold by Western companies exiting Russia.
The deal, first reported by the Financial Times, will give Arnest control of Reckitt's Russian consumer goods operations, which manufacture products sold under brands including Vanish, Durex, Finish and Calgon. Reckitt will retain its medical business in Russia.
The sale is expected to result in a loss of around 175 million pounds ($233 million) for Reckitt, which started preparing to transfer the business after Russia launched its full-scale invasion of Ukraine in 2022, FT reported.
Arnest, owned by businessman Alexei Sagal, was until a few years ago best known as a regional producer of aerosol products, including the insecticide Dichlorvos. Since 2022, however, it has completed a series of high-profile acquisitions of assets previously owned by foreign companies.
In late 2022, Arnest acquired the Russian operations of U.S.-based Ball Corporation, which manufactured aluminum beverage cans, in a deal estimated to be worth about $530 million.
