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.
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