Reckitt Benckiser Sells Off Food Business To McCormick For $4.2 Billion
Rakesh Kapoor-led consumer goods company Reckitt Benckiser sold off its food unit to USA-based spice magnate McCormick in a USD 4.2 billion (~ INR 270 billion) deal on Wednesday. The sale comes just three months after Reckitt kicked off a review of its hugely popular Frank’s red hot sauces.
Following the deal, Reckitt can now shift its entire focus towards its health and hygiene wing that has products like Dettol, Scholl, Durex, and Mortein among many others, as well as the latest feather in its hat – Mead Johnson Nutrition Company, which it acquired for a whopping USD 17.9 billion earlier this year.
According to reports, the bid is said to aid Reckitt in paying off its debt after the Mead Johnson deal in June. Moreover, the multinational’s sales are also projected to see a surge as per Kapoor, who added that the deal would aid Reckitt Bensicker takeover as a global leader in the consumer health and hygiene sector.
Meanwhile, the deal has taken up Baltimore-based McCormick’s position in the market by several notches, leaving behind major players like Hormel Foods, Unilever, and Pinnacle Foods among others.
The acquisition has enabled McCormick’s business to become the leading group for condiment, spice and seasoning needs, said Lawrence Kurzious, chief executive of the former Premier Foods suitor, which is know for popular its seasonings, blends, food colourings and more mainly in the US.
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