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Colgate-Palmolive has engaged Goldman Sachs to prepare for a possible deal. Talks are at an early stage, so the composition of the assets and the very possibility of a sale may still change. The company and Goldman Sachs declined to comment.
This does not involve the entire Personal Care division, according to Reuters. The division includes deodorants, soap, shower gels and skincare products; however, Colgate-Palmolive intends to divest only part of the portfolio. Such a move will free up resources for areas the company considers to have greater potential.
Major manufacturers are changing their strategy
Colgate-Palmolive is following a path already taken by other major consumer goods manufacturers. Companies are divesting non-core assets in an attempt to protect profits from tariffs, expensive raw materials, rising energy costs and more cautious consumer behaviour.
This year, Unilever agreed to sell its McCormick food business for $45 billion and spun off its ice-cream business into a separate entity. In September, Nestlé agreed to sell its mass-market vitamin supplements business to Yellow Wood Partners for approximately $1 billion.
For Colgate-Palmolive, Personal Care remains a significant business, but is far from being the main one. In 2025, the entire division, including mass-market and premium brands, generated around $3.5 billion, or 17 per cent of the company’s net revenue. Almost half of the revenue comes from the core segment – oral care products.
The situation in the North American market remains particularly challenging for the company, with competition intensifying. In the last quarter, Colgate-Palmolive’s net revenue rose by 4.9 per cent, but organic sales growth in the region amounted to just 3 per cent. Chief Executive Noel Wallace stated at a Barclays conference that increased competition would require the company to undertake a “long-term reorganisation”.
Colgate-Palmolive’s market capitalisation currently stands at around $70 billion, and its share price has risen by approximately 11 per cent since the start of the year. The potential sale of brands worth over $1 billion will form part of the company’s portfolio review.
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