MCCORMICK & CO INC acquires Reckitt Benckiser's Food Division (RB Foods)

MCCORMICK & CO INC acquired Reckitt Benckiser's Food Division (RB Foods) for approximately $4.2 billion, a transaction completed in August 2017, structured as all cash.

Reckitt Benckiser's Food Division (RB Foods) operates in Consumer & Flavor Solutions - Condiments, is based in United States; brands sold in U.S. and Canada, had revenue of about Combined pro forma 2017 annual net sales expected to be approximately $5 billion. RB Foods is the food division of Reckitt Benckiser Group plc, home to iconic market-leading condiment brands including French's mustard, Frank's RedHot hot sauce and Cattlemen's barbecue sauce. Frank's RedHot is the #1 hot sauce brand in the U.S. and Canada.

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 advances from its #10 position to a leading position in the U.S. Condiments category.

Leadership position in the advantaged Hot Sauce category with Frank's RedHot, the #1 brand in the U.S. and Canada; high-margin condiments adjacent to McCormick's core flavor portfolio. Significant margin accretion expected; combined pro forma 2017 net sales of approximately $5 billion. Integrated into McCormick's Consumer and Flavor Solutions segments Lawrence Kurzius, Q3 FY2017 earnings call (Sept 28, 2017): "We announced and then subsequently closed on our acquisition of RB Foods on August 17. This is the largest deal in our company's history. The acquisition strengthens our flavor leadership with the addition of iconic French's and Frank's RedHot brands to our portfolio, which are now our number 2 and number 3 brands respectively."