SPARKS, Md., Aug. 17, 2017 /PRNewswire/ -- McCormick &
Company Inc. (NYSE: MKC), a global leader in flavor, today
announced that it has completed its acquisition of Reckitt
Benckiser's Food Division ("RB Foods") from Reckitt Benckiser Group
plc ("RB"), which was previously announced on July 18, 2017.
The brands acquired, including Frank's RedHot®, French's® and
Cattlemen's® are high quality assets and a natural strategic fit
with McCormick's robust global branded flavor portfolio.
McCormick funded the purchase price of approximately $4.2 billion, subject to certain customary
purchase price adjustments, through a combination of new debt,
comprised of senior unsecured notes and pre-payable term loans, and
equity. The notes offering and equity offering were completed
on August 11, 2017.
"We are thrilled to acquire Frank's RedHot, French's and other
iconic, market-leading brands, as we complete a transaction that
has been at the top of our strategic list for over a decade and
will generate significant shareholder value," said Lawrence E. Kurzius, Chairman, President and
Chief Executive Officer. "McCormick is the perfect home for
brands like Frank's RedHot and French's as their simple, clean
ingredients make them liquid spice. The addition of these
highly complementary brands will allow McCormick to continue to
take advantage of the growing trend toward spicy, flavorful eating
with natural, high-quality ingredients and advances our vision to
Bring the Joy of Flavor to Life. The talented employees of RB
Foods have built a great business, and we look forward to working
with them to achieve continued success."
McCormick expects to update its 2017 annual guidance, inclusive
of the acquisition, on its third quarter earnings call on
September 28, 2017 at 8:00 a.m. ET.
Forward-looking Information
Certain information
contained in this press release that are not statements of
historical or current fact constitute "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934. These statements may be identified by the use of words
such as "may," "will," "expect," "should," "anticipate," "intend,"
"believe" and "plan." The forward-looking statements
contained in this press release include, without limitation,
statements related to: the expected impact of the acquisition of RB
Foods, including among others, on McCormick's net sales, expected
trends in net sales and earnings performance and other financial
measures; expectations regarding improved scale, growth potential
in various products, geographies and market categories, including
the impact from innovation, a more diverse product offering and
millennial household penetration; expectations regarding growth in
the Hot Sauce category; the realization of anticipated cost
synergies, margin expansion and adjusted earnings per share
accretion from the acquisition; the ability to retain key
personnel; and the anticipated sufficiency of future cash flows to
enable the payments of interest and repayment of short- and
long-term debt as well as quarterly dividends.
These and other forward-looking statements are based on
management's current views and assumptions and involve risks and
uncertainties that could significantly affect expected
results. Results may be materially affected by factors such
as: risks associated with acquisitions generally, such as the
failure to retain key management and employees of RB Foods; issues
or delays in the successful integration of RB Foods' operations
with those of McCormick, including incurring or experiencing
unanticipated costs and/or delays or difficulties; difficulties or
delays in the successful transition of the RB Foods' business from
the information technology systems of RB to those of McCormick as
well as risks associated with the integration and transition of the
operations, systems and personnel of RB Foods, within the term of
the six-month post-closing transition services agreement between
McCormick and RB; future levels of revenues being lower than
expected and costs being higher than expected; failure or inability
to implement growth strategies in a timely manner; unfavorable
reaction to the acquisition by customers, competitors, suppliers
and employees; conditions affecting the industry generally; local
and global political and economic conditions; changes in the level
of capital investment; and other risks described in the company's
filings with the Securities and Exchange Commission, including
McCormick's Annual Report on Form 10-K for the year ended
November 30, 2016.
Actual results could differ materially from those projected in
the forward-looking statements. The company undertakes no
obligation to update or revise publicly, any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by law.
About McCormick
McCormick & Company,
Incorporated is a global leader in flavor. With $4.4 billion in annual sales, the company
manufactures, markets and distributes spices, seasoning mixes,
condiments and other flavorful products to the entire food industry
– retail outlets, food manufacturers and foodservice
businesses. Every day, no matter where or what you eat, you
can enjoy food flavored by McCormick. McCormick Brings the
Joy of Flavor to Life™.
For more information, visit www.mccormickcorporation.com.
For information contact:
Investor Relations:
Kasey Jenkins (410-771-7140 or
kasey_jenkins@mccormick.com)
Corporate Communications:
Lori Robinson (410-527-6004 or
lori_robinson@mccormick.com)
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SOURCE McCormick & Company, Inc.