McCormick & Company Inc. (NYSE: MKC), a global leader in flavor, today announced that it has completed its acquisition of Reckitt Benckiser's Food Division from Reckitt Benckiser Group plc, which was previously announced on July 18, 2017.
The brands acquired, including Frank's RedHot®, French's® and Cattlemen's® are high quality assets and a natural strategic fit with McCormick's robust global branded flavor portfolio. McCormick funded the purchase price of approximately $4.2 billion, subject to certain customary purchase price adjustments, through a combination of new debt, comprised of senior unsecured notes and pre-payable term loans, and equity. The notes offering and equity offering were completed on August 11, 2017.
"We are thrilled to acquire Frank's RedHot, French's and other iconic, market-leading brands, as we complete a transaction that has been at the top of our strategic list for over a decade and will generate significant shareholder value," said Lawrence E. Kurzius, Chairman, President and Chief Executive Officer. "McCormick is the perfect home for brands like Frank's RedHot and French's as their simple, clean ingredients make them liquid spice. The addition of these highly complementary brands will allow McCormick to continue to take advantage of the growing trend toward spicy, flavorful eating with natural, high-quality ingredients and advances our vision to Bring the Joy of Flavor to Life. The talented employees of RB Foods have built a great business, and we look forward to working with them to achieve continued success."
McCormick expects to update its 2017 annual guidance, inclusive of the acquisition, on its third quarter earnings call on September 28, 2017 at 8:00 a.m. ET.
About McCormick
McCormick & Company, Incorporated is a global leader in flavor. With $4.4 billion in annual sales, the company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry – retail outlets, food manufacturers and foodservice businesses. Every day, no matter where or what you eat, you can enjoy food flavored by McCormick. McCormick Brings the Joy of Flavor to Life™.
For more information, visit www.mccormickcorporation.com.
