Colgate Weighs $1 Billion Sale of Personal Care Brands

A $1 billion-plus portfolio reshuffle would give Colgate-Palmolive a way to put distance between its strongest franchises and a sluggish North American consumer business.

The company is exploring the sale of several mass-market personal care brands, including Softsoap, Irish Spring and Speed Stick, according to people familiar with the process cited by Reuters. Goldman Sachs is advising Colgate-Palmolive, although neither company commented on the report. The discussions remain exploratory, and the company is considering selected brands rather than an exit from personal care.

That distinction matters. Colgate’s broader personal care operation includes deodorants, bar and liquid soaps, shower gels and skin care, and generated roughly $3.5 billion in 2025 sales, or about 17% of company revenue. Selling a handful of labels would be a pruning exercise, not a wholesale retreat from the category.

The timing reflects a sharper problem inside the North American business. Colgate’s second-quarter net sales rose 4.9% to $5.36 billion, while organic sales in North America fell 3%, according to the company’s July 31 earnings release. The region accounted for 17% of total company sales in the quarter, compared with 22% for Hill’s Pet Nutrition and 26% for Latin America.

Chief Executive Noel Wallace said this month that restoring North America would require a “long-term turnaround,” underscoring why investors may welcome a simpler brand lineup. Colgate’s oral-care business, anchored by its namesake toothpaste, remains the company’s largest segment and represented almost half of sales in 2025. Hill’s pet nutrition is another strategic priority.

A completed transaction would give Colgate cash to redirect toward marketing, innovation, debt reduction or shareholder returns, although management has not said how proceeds would be used. The company generated $1.74 billion in operating cash flow during the first half of 2026 and is already investing heavily in advertising as it pursues its 2030 strategy.

For CL shareholders, the immediate question is less the headline price than the quality of the buyer and the brands left behind. A sale at an attractive multiple would validate the portfolio strategy. A drawn-out process, or weak valuation for familiar but slower-growing labels, would offer less relief while leaving North America’s turnaround unresolved.