McCormick to buy Reckitt Benckiser's food business for $4.2bn
French’s Mustard, Frank’s RedHot Sauce and Cattlemen’s BBQ Sauce are among the Reckitt Benckiser brands snapped up for $4.2bn by USA food producer McCormick.
Frank’s is already a number one brand in the USA and Canada, and the acquisition will allow McCormick to advance from current position of 10th to a leading position in US condiments market.
Combined 2017 annual net sales are expected to be approximately $5 billion with significant margin gains – McCormick already turns over around $4.4 billion a year.
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Lawrence Kurzius, Chairman, President and Chief Executive Officer of McCormick, said: “The acquisition of RB Foods strengthens McCormick's flavour 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.
“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, flavourful eating. The addition of Frank's RedHot Hot Sauce, the clear consumer favourite 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 flavour 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 US and internationally."
RB is thought to be concentrating on its consumer health and hygiene products, with brands including Finish, Dettol, Nurofen and Cillit Bang.