McCormick & Company will account for more space in American cupboards after agreeing to buy French’s mustard and Frank’s Red Hot sauce in a deal worth $4.2 billion.
The spice maker, based in Sparks, MD, will acquire the food business of Reckitt Benckiser, the British consumer-goods company, and intends to finance the deal through a combination of debt and equity. The business includes the French’s, Frank’s Red Hot and Cattlemen’s brands.
“The acquisition of Frank’s Red Hot, French’s mustard and other beloved products enables McCormick to become a one-stop shop for condiment, spice and seasoning needs, providing our customers and consumers with an even more diverse and complete flavor product offering,” Lawrence E. Kurzius, the McCormick chairman, president and chief executive, said.
The deal also includes French's crispy vegetable products, brings a stable of well-known condiments to McCormick. McCormick already owns Zatarain's, Lawry's, Old Bay, Grill Mates and Stubb's, among others.
For Reckitt Benckiser, unloading the products continues an overhaul that began with an expansion into baby formula through the British company's acquisition of Mead Johnson Nutrition Co. for $16.6 billion. Reckitt Benckiser's brands include Enfamil, Nutramigen, Clearasil, Lysol, Veet, Calgon, Woolite and Air Wick.
The transaction is expected to be completed in the third or fourth quarter of McCormick’s fiscal year, which ends in November. The deal is subject to regulatory approval.