British consumer health giant Reckitt Benckiser has agreed to offload its sauces division to US spicemaker McCormick for $4.2 billion (3.6 billion euros), the groups said Wednesday.
"Reckitt Benckiser Group plc is pleased to announce that it has entered into an agreement to sell its food business, including the French's, Frank's RedHot and Cattlemen's brands, to McCormick & Company Inc.," Reckitt said in a statement after a strategic review.
The price tag reflects "the quality of this highly profitable, growth business".
The deal will hand McCormick a leading position in the condiments sector in the United States. It is currently the tenth biggest player.
The Maryland-based group's top US brands include McCormick, Grill Mates and McCormick Gourmet. It also sells Schwartz seasoning in Britain and Ducros in France.
RB Food brands include French's mustard and Frank's RedHot sauce, which will now become McCormick's second and third biggest sellers respectively.
RB Food was "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," said McCormick boss Lawrence E. Kurzius in a separate statement.
The divestment follows Reckitt's purchase of US infant and child nutrition specialist Mead Johnson in February for $16.6 billion.
That deal took Reckitt, whose brands include Durex condoms and Nurofen painkillers, into the baby-food market for the first time -- and targeted rapid expansion in fast-growing Asian markets like China.
"Following the acquisition of Mead Johnson Nutrition, this transaction marks another step towards transforming RB into a global leader in consumer health and hygiene," said Reckitt chief executive Rakesh Kapoor.
The deal will create a combined group with annual sales of around $5 billion dollars (£3.8 billion).
source: AFP
GMT 12:56 2018 Friday ,05 January
London house prices in first annual fall since 2009GMT 10:30 2018 Thursday ,04 January
SPNB Wants To Build 15,000 Affordable Homes NationwideGMT 11:42 2017 Tuesday ,19 December
German real estate giant to swallow rival in $6bn dealGMT 05:38 2017 Friday ,08 December
World's biggest sovereign fund enters Asian property marketGMT 15:45 2017 Thursday ,07 December
US private sector hiring slows in NovemberGMT 11:36 2017 Wednesday ,06 December
Sahalah FM Brings 360 Building Services to The KingdomGMT 13:18 2017 Tuesday ,28 November
US new home sales rise to 10-year highGMT 08:05 2017 Monday ,13 November
Southern housing plans discussedMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©