E45 cream has been a cult product in the UK for generations for its ability to treat dry and itchy skin, eczema, psoriasis and dermatitis. Created in 1952 by Crookes Healthcare, a subsidiary of Reckitt Benckiser, the very affordable relief treatment was originally available in hospitals before moving into retail.
Also effective for sunburn, chapped skin and rashes, the simple formula relies on two types of paraffin and lanolin. E45 was launched in Australia in late 2018 and leading stockists include Chemist Warehouse, Priceline, Amcal, Coles and Woolworths. In addition to the original SKU, the range has expanded to Itch Recovery Wash and Lotion, Moisturising Lotion for Dry Skin and Dermatological Cream.
Reckitt Benckiser, the makers of Dettol and Lysol, have inked a deal to sell the E45 skincare brand to Karo Pharma, the Swedish pharmaceutical group, for US$273 million. The UK-based multinational tried to sell E45 and Scholl footcare in a bundle with the Veet and Clearasil brands last year in a deal priced at US$1.36 billion but halted the process.
The company sold the Scholl footcare brand, a category leader in Australia, to Yellow Wood Partners in mid-2021. The US private equity group had acquired the Dr Scholl US business from Bayer in 2019 and last year’s deal reunited both sides of the global business for the first time in 30 years.
Karo Pharma was founded in 1987 and owns and commercialises pharmacy and DTC brands across six key categories, including dermatology and intimate care. The company’s products are sold in more than 60 countries, with Europe and the Scandinavian countries accounting for the majority of sales.
E45’s total revenues for the financial year to December reached US$58.8 million and the acquisition strengthens Karo’s position in the UK market.
Going forward, Reckitt Benckiser will focus on higher growth sectors such as vitamins, sexual health and specialised nutrition. The company bought Queen V, the US sexual wellness brand, in January 2021 to join KY and Durex in its Health Global Business Unit.