Home Business NewsBusiness Reckitt Benckiser sells food business to US Schwartz owner for £3.2bn

Reckitt Benckiser sells food business to US Schwartz owner for £3.2bn

by LLB Reporter
19th Jul 17 10:36 am

Find out more about the deal

FTSE 100 company Reckitt Benckiser which owns brands such as Durex, Cillit Bang and Nurofen has agreed to sell its food business to US spice and herbs company McCormick & Co for £3.2bn, it was announced today.

The deal agrees the sale of US-based French’s Food, which includes leading brand names French’s Mustard, Frank’s RedHot and Cattlemen’s, to McCormick who fought of competition from consumer goods giant Unilever.

The sale follows a strategic review of the Reckitt Benckiser business after the company acquired baby formula firm Mead Johnson for $17.9bn earlier this year and the company said it plans to use the proceeds to reduce its debts.

Rakesh Kapoor, Reckitt Benckiser chief executive, said: “Following the acquisition of Mead Johnson Nutrition, this transaction marks another step towards transforming RB into a global leader in consumer health and hygiene, ensuring we continue to deliver for shareholders and give people innovative solutions for healthier lives and happier homes.” 

“We are pleased to be selling to owners who can provide the necessary resources, market expertise and global platform, whilst being a good home for our people,” he added. 

The deal comes after McCormick failed in their bid to buy Premier Foods last year, the owners of Mr Kipling cakes and Bisto gravy.

Leave a Commment

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]