McCormick buys Reckitt Benckiser food unit for US$4.2b

New York

MCCORMICK & Co has agreed to acquire Reckitt Benckiser Group Plc's food business for US$4.2 billion, a deal that would add French's mustard and Frank's RedHot sauce to the spice giant's lineup.

The transaction is expected to be completed in the third or fourth quarter of McCormick's fiscal 2017, pending regulatory approvals, according to a statement on Tuesday. McCormick plans to fund the deal with a combination of equity and debt, and said it has obtained committed bridge financing.

The deal would bring a stable of well-known condiments to Sparks, Maryland-based McCormick, which is best known for spices and seasonings. Reckitt, meanwhile, is unloading the products as part of an expansion into baby formula. The British consumer products company acquired the pediatric nutrition seller Mead Johnson Nutrition Co in a US$16.6 billion deal earlier this …