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US: McCormick’s US$4.2b bid beats all for Reckitt-Benckiser brands

By  |  July 19, 2017

US based McCormick & Company, maker of spices, herbs and flavorings, beat competition from several strategic bidders, including Pinnacle Foods, to secure brands being sold by Reckitt Benckiser.

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    The bid, which was higher than expected at US$4.2 billion, will help boost McCormick’s net sales to about US$5 billion a year, starting in 2017.

    The sale will also free up Reckitt to focus on turning around newly acquired Mead Johnson and reduce the cost of funding US$18 billion for the infant formula group.

    Lawrence Kurzius, chairman and chief executive of McCormick, said the acquisition consolidated the group’s position as “a one-stop shop for condiment, spice and seasoning needs.”

    Shares in Reckitt rose 1.4%, while shares in McCormick were 5% lower in New York.

    Full Content: The Financial Times

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