McCormick (MKC) acquires Reckitt Benckiser's (RBGLY) Food Division for $4.2 bln

• McCormick is buying Reckitt Bensicker’s condiments unit.
• Reckitt Benckiser, a consumer conglomerate that also makes products such as Veet hair remover, Air Wick air fresheners, Lysol cleaner and Durex condoms, made a $17.9 billion deal in February to buy baby-food maker Mead Johnson Nutrition Co.
• McCormick attempted to buy the British food company Premier Foods plc early last year for $700 million but the deal was rejected.

 

  

McCormick acquires Reckitt Benckiser's (RBGLY) Food Division for $4.2 bln :

McCormick & Company (MKC) announced that it has signed a definitive agreement to acquire Reckitt Benckiser's (RBGLY) Food Division from Reckitt Benckiser Group plc for $4.2 billion, subject to certain customary purchase price adjustments.

• Addition of Frank's RedHot Hot Sauce, French's Mustard and other iconic, market-leading products strengthens McCormick's leadership in the attractive Condiments category and advances the Company's vision to Bring the Joy of Flavor to Life
• McCormick to advance from current position of #10 to a leading position in U.S. Condiments category 
• Combined pro forma 2017 annual net sales are expected to be ~$5 billion with significant margin accretion
• 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 transaction is expected to be completed in the third or fourth quarter of McCormick's fiscal 2017