Colgate-Palmolive looks to divest some personal care brands, sources say

• The brands under review are part of Colgate's personal care unit, which accounts for 17% of net sales (approximately $3.5 billion), while only select brands totaling over $1 billion are planned for sale
• Colgate's North American organic sales fell 3% in the most recent quarter, with CEO Noel Wallace acknowledging 'intensifying competition' and a 'long-term turnaround' needed in the region
• The divestiture follows similar portfolio reshaping by competitors including Unilever's $45 billion sale of its food business to McCormick and Nestle's $1 billion vitamins business sale to Yellow Wood Partners

Summary: Colgate-Palmolive Explores Sale of Personal Care Brands

Colgate-Palmolive is exploring the divestiture of several mass-market personal care brands, including Softsoap, Irish Spring, and Speed Stick, according to sources familiar with the matter. The company has engaged Goldman Sachs as its investment bank advisor for the potential sale process.

Key Financial Details

The brands under review could fetch over $1 billion collectively. Colgate-Palmolive currently has a market capitalization of approximately $70 billion, with shares up 11% year-to-date. The company's entire personal care unit represents 17% of net sales in 2025, translating to roughly $3.5 billion in revenue.

Strategic Context

The potential sale reflects broader industry consolidation as consumer goods companies streamline portfolios amid challenges including tariffs, cost-pressured consumers, and rising input costs. Colgate's most recent quarterly results showed overall net sales growth of 4.9%, but North American organic sales declined 3%. CEO Noel Wallace acknowledged intensifying North American competition and described the situation as requiring a "long-term turnaround."

Sector Trends

The move follows similar portfolio optimization by competitors: Unilever sold its food business to McCormick for $45 billion this year and divested 20+ beauty and personal care brands to Yellow Wood Partners in 2024. Nestlé recently sold its vitamins business to Yellow Wood for approximately $1 billion.

Colgate's core business remains oral care, accounting for nearly half of net sales, with other segments including home care and pet nutrition. The divestiture would allow the company to concentrate resources on core brands during this challenging market environment.