Colgate-Palmolive is exploring the sale of several key mass-market personal care brands as part of a strategic portfolio realignment. According to a Reuters report citing people familiar with the matter, the New York-based consumer products giant is working with investment bank Goldman Sachs to gauge buyer interest in select assets. The targeted divestment involves a subset of Colgate's broader personal care division, which encompasses deodorants, soaps, shower gels, and skin care lines. Sources indicated that the specific brands up for sale could collectively fetch more than $1 billion in a potential transaction. The potential transaction would involve only some brands within Colgate's personal care business, rather than a sale of the entire division, as reported by Reuters.
The brands under consideration are part of Colgate's personal care business, which encompasses deodorants, bar and liquid soaps, shower gels and skincare products. According to Reuters sources, these mass-market personal care labels represent a significant portion of the company's consumer products portfolio. The company's 2025 annual report lists Softsoap, Irish Spring, Lady Speed Stick and Speed Stick, among others, within its personal care portfolio. Personal Care accounted for 17% of Colgate-Palmolive's worldwide net sales in 2025, down from 18% in 2024 and 19% in 2023. The personal care category generated roughly $3.5 billion in annual sales out of Colgate's total 2025 net sales of $20.38 billion. The company does not separately disclose revenue for individual brands such as Softsoap, Irish Spring or Speed Stick.
The divestment process involves Goldman Sachs, which has been engaged to advise on the proposed sale. As reported by Reuters, the investment bank is providing strategic guidance to Colgate-Palmolive as the company evaluates its personal care portfolio. The partnership reflects the complexity of managing such a significant divestment process in the current market environment, with the bank helping to identify potential buyers and structure the transaction.
The move highlights a growing trend among multinational consumer packaged goods companies seeking to streamline operations amid persistent macro headwinds. Legacy conglomerates face elevated energy costs, potential import tariffs, and an increasingly price-sensitive global consumer, squeezing operating margins across non-core segments. By trimming secondary brands, Colgate can concentrate its capital and marketing resources on high-margin, high-growth core categories like oral care and pet nutrition. The potential divestiture comes as Colgate is already carrying out a broader productivity and restructuring program. In April, Colgate-Palmolive's board expanded its Strategic Growth and Productivity Program, increasing the estimated cumulative pre-tax charges to $350 million to $550 million, from the previous $200 million to $300 million range. The expanded program is expected to generate annual pre-tax savings of $200 million to $300 million once all initiatives are approved and implemented.
With a market capitalization of approximately $70 billion, Colgate has maintained steady operational execution, driving a roughly 4% stock gain over the past year. The potential divestment aligns with broader industry trends as consumer giants increasingly streamline their portfolios to address cost pressures. Colgate's largest product category is oral care, which represented 44% of 2025 net sales, while home care accounted for 16% and pet nutrition for 23%. In its second-quarter 2026 results, Colgate reported net sales growth of 4.9% and organic sales growth of 2.4%, though North American net sales and organic sales each declined 3% year-over-year. Colgate CEO Noel Wallace acknowledged at the Barclays consumer conference that competition in North America was intensifying and that getting the business where it needs to be would require a 'long-term turnaround'. At the time of writing, CL shares traded marginally in the red, though retail sentiment on Stocktwits was 'bullish' early Friday, with CL shares having gained over 9% year-to-date.
