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Yellow Wood reportedly close to acquiring ChapStick

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Jan 24, 2024
Chapstick lip balm

Photo by Julia Ewan/The The Washington Post via Getty Images

PE firm Yellow Wood Partners is in late-stage talks to buy lip balm brand Chapstick from consumer health company Haleon, Reuters reports.

Driving the news: If a deal is struck, it would be Yellow Wood's third pickup of a corporate beauty division in the last year.

Catch up fast: Haleon — the former consumer health division of drug company GlaxoSmithKline — launched an auction for Chapstick early last year, hoping to fetch about $600 million for the business.

Yes, but: Yellow Wood's offer came in lower than what Haleon was seeking, Reuters reports, citing sources familiar.

What's next: Per Reuters, both sides are close to a compromise on valuation, which could see a deal inked in the next few days if successful.

Haleon and Yellow Wood did not respond to a request for comment.

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