McCormick Embraces Condiments in $4.2B Purchase of RB Foods

July 19, 2017

2 Min Read
McCormick Embraces Condiments in $4.2B Purchase of RB Foods
The French's Mustard brand will come under the ownership of McCormick after a recent acquisition. Image courtesy of Flickr user jeepersmedia

Franks Red Hot Sauce, French’s Mustard and other leading condiment brands will come under the ownership of McCormick & Company Inc. as the American spice and flavorings firm acquires the food division of Reckitt Benckiser Group plc in a $4.2 billion transaction, the companies announced in separate press releases Wednesday.

“The acquisition of RB Foods strengthens McCormick’s flavor leadership with the addition of the iconic French’s and Frank’s RedHot brands to our portfolio, which will become our number two and number three brands, respectively,” Lawrence E. Kurzius, McCormick’s president and chief executive officer, said in a statement.

McCormick said the move will propel the company from the #10 firm in the U.S. condiments category to a “leading position,” and creates a strong foothold in the hot sauce category, as Frank’s is the top brand sold in the U.S. and Canada. It also produces French’s Crispy Vegetables and Cattlemen’s BBQ sauce.

“RB Foods’ track record of creating market-leading products and its dedicated state-of-the-art manufacturing facility are a strong complimentary fit that we expect will strengthen McCormick’s business opportunities as we expand our presence in condiments, a core category for the company in the U.S. and internationally,” said Kurzius.

Slough, UK-based Reckitt Benckiser said in its press release the sale is part of its transition to focusing on leadership in the consumer health and hygiene categories.

The transaction is expected to close in the third quarter of 2017 pending regulatory approvals.

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