FDBusiness.com

McCormick Strengthens Flavour Leadership With $4.2 Billion Acquisition

 Breaking News
  • Arla Foods Delivers Turn-around After Tough Start to 2018 After a difficult first quarter, Arla Foods came out of 2018 with improved sales and brand share as the international dairy co-operative’s performance grew stronger throughout the year. The transformation programme Calcium delivered cost-savings far beyond targets for the year and thanks to a historically strong balance sheet the board of directors has proposed to [...]...
  • British Gin Boosted by Exports The latest figures from HM Revenue and Customs show that British gin sales abroad, in 2018, were worth £612 million – up 15% on the previous year. In 2016 export sales of the juniper-based spirit broke the half a billion-pound mark for the first time and since then the popularity of British gin has seen [...]...
  • Operating Profit Declines at PepsiCo Announces $2.5 Billion Restructuring Programme PepsiCo has reported a 2% increase in net net revenue to $64.66 billion and a 2% drop in operating profit to $10.11 billion for 2018. However, organic revenue, which excludes the impacts of foreign exchange translation, acquisitions, divestitures, structural and other changes, grew 4% and and core constant currency operating profit increased 2%. Commodity mark-to-market net [...]...
  • Kerry Group Benefits From Unique Business Model Kerry Group, the global taste, nutrition and consumer foods business, has reported a 3.1% increase in revenue to €6.6 billion for the year ended 31 December 2018, reflecting strong volume growth and contribution from acquisitions, partially offset by adverse currency movements. Business volumes grew by 3.5% and pricing decreased by 0.5% against a backdrop of [...]...
  • Premier Foods Discontinues Ambrosia Sale Process Premier Foods has decided not to proceed with the potential disposal of its Ambrosia brand. A number of parties expressed interest in the business, and since the New Year Premier Foods has been engaged in detailed discussions with a small group of potential buyers. However, the Premier borad has concluded that in the present business [...]...

McCormick Strengthens Flavour Leadership With $4.2 Billion Acquisition

McCormick Strengthens Flavour Leadership With $4.2 Billion Acquisition
July 20
10:25 2017

McCormick & Company, the US-based ingredients producer, is acquiring the food business of Reckitt Benckiser Group, the consumer health and hygiene company, for $4.2 billion. Reckitt Benckiser’s food business, which incorporates Frank’s RedHot Hot Sauce, French’s Mustard and other iconic, market-leading products, will strengthen McCormick’s leadership in the attractive condiments category in the US.

Operating facilities in 27 countries and with $4.4 billion in annual sales, McCormick manufactures, markets and distributes spices, seasoning mixes, condiments and other products to retailers, food manufacturers and food service operators. The Americas accounts for 67% of group revenue, 20% is generated by EMEA (Europe, Middle East & Africa) and 13% from the Asia Pacific Zone.

McCormick will integrate RB Foods into its Consumer and Industrial segments. Combined pro forma 2017 annual net sales of the enlarged McCormick are expected to be approximately $5 billion with significant margin accretion. As a result of increased scale, McCormick expects to achieve cost synergies of approximately $50 million, the majority of which will be achieved by 2020.

“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,” says Lawrence E Kurzius, chairman, president and chief executive of McCormick & Company. “RB Foods’ focus on creating products with simple, high-quality ingredients makes it a perfect match for McCormick as we continue to capitalize on the growing consumer interest in healthy, flavorful eating.”

He adds: “RB Foods’ track record of creating market-leading products and its dedicated state-of-the-art manufacturing facility are a strong complementary 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 US and internationally.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements