US spice maker McCormick & Company has agreed to buy Reckitt Benckiser's food business for $4.2bn (£3.2bn), it confirmed today.
The deal will mean McCormick adds a slew of brands to its roster including French's mustard and Frank's Red Hot Sauces.
The British consumer goods behemoth said it would look to offload its food business back in April after picking up infant formula maker Mead Johnson for $17.9bn. Reckitt Benckiser said that it had initiated a strategic review of the division “where we will explore all options for this great business”.
It had recently been revealed that consumer goods giant Unilever was involved in a £2bn bidding war to buy the food business.
The London and Amsterdam-listed firm was among a handful of companies understood to be competing for the operation behind French’s mustard.
Today Rakesh Kapoor, Reckitt's chief execuitve, 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."