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McCormick to acquire RB Foods from Reckitt Benckiser for $4.2 billion

21 Jul 2017

McCormick is to acquire Reckitt Benckiser’s Food Division (“RB Foods”) from Reckitt Benckiser Group for $4.2 billion, subject to certain customary purchase price adjustments.

McCormick to acquire RB Foods from Reckitt Benckiser for $4.2 billion

McCormick is to acquire Reckitt Benckiser’s Food Division (“RB Foods”) from Reckitt Benckiser Group for $4.2 billion, subject to certain customary purchase price adjustments. This, says the company, adds Frank’s RedHot Hot Sauce, French’s Mustard and other iconic, market-leading products, strengthening McCormick’s leadership in the attractive condiments category.

Combined pro forma 2017 annual net sales are expected to be approximately $5 billion. McCormick will integrate RB Foods into its Consumer and Industrial segments and will retain the brand names of French’s, Frank’s RedHot and Cattlemen’s.

“The acquisition of RB Foods strengthens McCormick’s flavor leadership with the addition of the iconic French’s and Frank’s RedHot brands to our portfolio, which will become our number two and number three brands, respectively,” said Lawrence E. Kurzius, Chairman, President and Chief Executive Officer. “RB Foods’ focus on creating products with simple, high-quality ingredients makes it a perfect match for McCormick as we continue to capitalize on the growing consumer interest in healthy, flavorful eating. The addition of Frank’s RedHot Hot Sauce, the clear consumer favorite in an attractive and high-growth category, French’s Mustard and the other beloved products enables McCormick to become a one-stop shop for condiment, spice and seasoning needs, providing our customers and consumers with an even more diverse and complete flavor product offering. RB Foods’ track record of creating market-leading products and its dedicated state-of-the-art manufacturing facility are a strong complementary fit that we expect will strengthen McCormick’s business opportunities as we expand our presence in condiments, a core category for the Company in the U.S. and internationally.”

“This transaction reinforces our focus on growth, reflecting McCormick’s commitment to making every meal and moment better and driving significant shareholder value. We have great respect for RB Foods and the strong business its employees have built. McCormick will be able to grow these brands in new and unique ways through our proven track record of insight-driven innovation and the ability to leverage our global footprint. We are confident McCormick is the perfect home for RB Foods’ popular brands and employees.”

The transaction is expected to be completed in the third or fourth quarter of McCormick’s fiscal 2017.

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