Reckitt ties up deal to dispose of food brands

Household goods giant Reckitt Benckiser has confirmed a $4.2 billion (£3.2bn) deal to sell food brands including French’s mustard and Frank’s hot sauces to the maker of Schwartz spices.

US group Mccormick fought off a number of rival bidders to secure the British firm’s food business in a move that will propel it to the number one position in America’s condiments market.

It comes a year after Mccormick’s takeover battle to buy London-listed Mr Kipling’s cake firm Premier Foods failed.

Mccormick said Reckitt’s food arm was a “perfect match” for the group and pledged to keep the wellknown brand names, which also include Cattlemen’s BBQ Sauce. The deal will create a combined group with annual sales of around $5bn.

Mccormick boss Lawrence Kurzius said: “The addition of Frank’s Redhot hot sauce… French’s Mustard and the other beloved products enables Mccormick to become a one-stop shop for condiment, spice and seasoning needs.”