TIDMRB.
RNS Number : 4697L
Reckitt Benckiser Group PLC
19 July 2017
Sale of Food Business to McCormick
19 July, 2017 - Slough, UK - Reckitt Benckiser Group plc ("RB")
is pleased to announce that it has entered into an agreement to
sell its Food business ("RB Food" or "French's Food"), including
the French's, Frank's RedHot and Cattlemen's brands, to McCormick
& Company Inc. ("McCormick") for $4.2 billion on a cash-free,
debt-free basis.
Today's announcement follows a comprehensive strategic review of
French's Food. The valuation achieved reflects the quality of this
highly profitable, growth business.
McCormick will retain the leading brand names of French's,
Frank's RedHot and Cattlemen's. RB Food's focus on creating high
quality products with simple ingredients makes it a strong match
with McCormick.
Rakesh Kapoor, Chief Executive Officer of RB, said:
"Our French's Food business is a true reflection of RB's
strengths - a portfolio of great brands driven through a culture of
innovation by passionate people to deliver consistent
outperformance. We are pleased to be selling to owners who can
provide the necessary resources, market expertise and global
platform, whilst being a good home for our people. French's Food is
well positioned to continue on its successful growth trajectory
under the food-focused ownership of McCormick.
"Following the acquisition of Mead Johnson Nutrition, this
transaction marks another step towards transforming RB into a
global leader in consumer health and hygiene, ensuring we continue
to deliver for shareholders and give people innovative solutions
for healthier lives and happier homes."
The consideration is subject to customary working capital
adjustments at completion. RB intends to use the net proceeds to
reduce its debt. The transaction is subject to certain regulatory
approvals and completion is expected during Q3 2017. The
transaction constitutes a class 2 transaction for the purposes of
the UK Listing Rules.
- ENDS -
For further information, please contact:
RB +44 (0)1753 217 800
Richard Joyce - SVP, Investor Relations
Patty O'Hayer - Head of Communications and Government
Affairs
Brunswick +44 (0)207 404 5959
Gabrielle Silver / David Litterick
Inside Information
This announcement is being made in accordance with the Market
Abuse Regulation (EU596/2014) and has been determined to contain
inside information in line with the definition therein.
About RB Food
RB Food is a world leader in condiments and toppings, with a
focused portfolio of iconic brands including French's, Frank's
RedHot and Cattlemen's. Tiger's Milk, a nutrition bar brand, will
also be sold as part of the transaction and has been included in RB
Food.
Headquartered in Chester, New Jersey, RB Food has had a long
history of delivering great taste through the highest quality,
better-for-you ingredients, and has demonstrated almost 20 years of
strong growth and profitability. Elliott Penner was appointed
President of The French's Food Company in 2000.
For the financial year ended 31 December 2016, RB's earnings
before interest, taxation, depreciation and amortisation
attributable to the transaction were GBP152 million ($206
million(1) ). This comprised adjusted operating profit for the Food
segment of GBP118 million, related depreciation and amortisation of
GBP6 million, a GBP27 million allocation of RB's corporate costs
and other stranded costs, and operating profit of GBP1 million for
Tiger's Milk.
For the financial year ended 31 December 2016, RB Food reported
US GAAP net revenue of $564 million (GBP416 million(1) ) and US
GAAP profit before tax of $179 million (GBP132 million(1) ). As at
31 March 2017, RB Food reported US GAAP gross assets of $172
million (GBP138 million(2) ), excluding intercompany balances.
About RB
RB is the global leading consumer health and hygiene company.
Driven by a purpose of providing innovative solutions for healthier
lives and happier homes, RB has operations in over 60 countries.
From the foundations of wellness and infant nutrition, to the
fundamentals of a hygienic home, its global brands help people live
healthier, happier lives.
RB has world leading Powerbrands which include household names
such as Enfamil, Nutramigen, Nurofen, Strepsils, Gaviscon, Mucinex,
Durex, Scholl, Clearasil, Lysol, Dettol, Veet, Harpic, Cillit Bang,
Mortein, Finish, Vanish, French's, Calgon, Woolite and Air
Wick.
RB's unique culture is at the heart of its success. Its drive to
achieve, passion to outperform and commitment to quality and
scientific excellence are manifested in the work of over 40,000
employees worldwide. RB is proud to lead the Save a Child a Minute
campaign, which aims to eliminate child deaths from diarrhoea, one
of the world's largest killers of children under five.
Further information
Morgan Stanley has acted as lead financial adviser to RB on the
transaction. RB has also received financial advice from Robey
Warshaw.
Reckitt Benckiser Group plc's LEI code is
5493003JFSMOJG48V108
(1) Assumes an average GBP / USD exchange rate of 1.3554 for the
financial year ended 31 December 2016.
(2) Assumes a GBP / USD exchange rate of 1.2450 on 31 March
2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISZMGMNKLRGNZG
(END) Dow Jones Newswires
July 19, 2017 02:00 ET (06:00 GMT)
Reckitt Benckiser (LSE:RKT)
Historical Stock Chart
From Apr 2024 to May 2024
Reckitt Benckiser (LSE:RKT)
Historical Stock Chart
From May 2023 to May 2024