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

Mead Johnson (MJN) to be acquired by Reckitt Benckiser (RBGLY) for $16.7 billion or $90 per share

    

  

Mead Johnson Nutrition confirms discussions with Reckitt Benckiser (RBGLY) with respect to its proposal to acquire the outstanding shares of MJN for $90 per share in cash :

• While it is the longstanding policy of Mead Johnson Nutrition (MJN) not to comment on market speculation or rumors, in response to media reports and a subsequent statement released by Reckitt Benckiser plc (RBGLY), the company confirms that it is in discussions with RB with respect to its proposal to acquire the outstanding shares of MJN for $90 per share in cash.
• Mead Johnson notes that no agreement has been completed, and there are no assurances that any transaction will result from these discussions. The company does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated. 
• The British consumer goods maker, best known for its Lysol cleaners, Durex condoms, Nurofen tablets and Scholl footcare products, hopes to expand into the baby formula market and boost its business outside of Europe.
• Mead Johnson, the world's No. 2 infant formula maker with its Enfamil brand, was spun off from drugmaker Bristol-Myers Squibb (BMY) in 2009.
• Mead Johnson was long rumored to be a takeover target for Danone or Nestle.

** charts before announcement **

a) Nestle rumors on 1/18/17