PARSIPPANY, N.J. — Reckitt Benckiser Group plc (RB) 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. for $4.2 billion on a cash-free, debt-free basis.
McCormick will retain the French’s, Frank’s RedHot and Cattlemen’s brand names.
“Our French’s food business is a true reflection of RB’s strengths — a portfolio of great brands driven through a culture of innovation by passionate people,” says Rakesh Kapoor, CEO of RB. “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. French’s Food is well positioned to continue on its successful growth trajectory under the food-focused ownership of McCormick.”
The deal is subject to customary working-capital adjustments at completion. RB intends to use the net proceeds to reduce its debt. The transaction is subject to certain regulatory approvals and completion is expected during Q3 2017.
