Sparks / MD. (mcc) McCormick + Company Inc., a global leader in flavour, announced that it has completed its acquisition of Reckitt Benckiser’s Food Division (RB Foods) from Reckitt Benckiser Group PLC (RB), which was previously announced a month ago.
The brands acquired, including Frank’s «RedHot», «French’s» and «Cattlemen’s» are high quality assets and a natural strategic fit with McCormick’s robust global branded flavour portfolio. McCormick funded the purchase price of approximately 4.2 billion USD, subject to certain customary purchase price adjustments, through a combination of new debt, comprised of senior unsecured notes and pre-payable term loans, and equity. The notes offering and equity offering were completed on August 11, 2017.
«We are thrilled to acquire Frank’s RedHot, French’s and other iconic, market-leading brands, as we complete a transaction that has been at the top of our strategic list for over a decade and will generate significant shareholder value», said Lawrence E. Kurzius, Chairman, President and Chief Executive Officer. «McCormick is the perfect home for brands like Frank’s RedHot and French’s as their simple, clean ingredients make them liquid spice. The addition of these highly complementary brands will allow McCormick to continue to take advantage of the growing trend toward spicy, flavourful eating with natural, high-quality ingredients and advances our vision to Bring the Joy of Flavour to Life. The talented employees of RB Foods have built a great business, and we look forward to working with them to achieve continued success».
