Mon, 03 Apr 2017 | BUSINESS SALE
Reckitt Benckiser, the British consumer goods giant, is considering a sale of its “non core” £2 billion-valued food division to focus on health brands and raise funds to acquire the US baby food maker Mead Johnson.
The Sunday Times reported that Reckitt has informed banks of its plans to offload the unit, which includes French’s, the bestselling mustard brand in America, and Frank’s Red Hot sauces.
The FTSE 100-listed Reckitt, whose other products include Dettol, Scholl, Durex and Cilit Bang, wants to focus more on consumer health brands. Its food division is responsible for only five per cent of its global sales.
In a statement the company described its food operation as “fantastic” but confirmed it was undertaking a “strategic review” of the division.
“Food is a truly fantastic business with great brands, people and a history of outperformance. It is nevertheless non core to RB,” the multinational said.
“We have therefore decided to initiate a strategic review of Food where we will explore all options for this great business.”
The Sunday Times said Reckitt has put a value of £2 billion on the business, the sale of which would help fund its takeover of Mead Johnson for $17.9 billion (£14.2 billion), announced in February. The acquisition will see Reckitt enter the growing and lucrative baby and infant nutrition market.
Any sale of Reckitt’s food division is likely to pique the interest of Kraft Heinz, the US food giant, which tried but failed to buy Unilever earlier this year.
Find food businesses for sale.
You can subscribe here.
A concept which led to revolutionizing the restaurant industry, offering an efficient and profitable approach to food production and targeted marketing.
Their versatile offerings include custom rafted joinery products such as elegant doorsets, stylish TV and media units, functional desks, ingenious shelving and storage solutions, luxurious bed surrounds, stunning timber staircases, sophisticated engi...
As a specialist in Italian Motorcycle Parts and Accessories supplies, the business has developed expertise in sourcing and offering a comprehensive range of high-quality products.
17
|
May
|
Focus Group continues acquisitive growth with telecoms deal | BUSINESS SALE
Business communications provider Focus Group has continued i...
17
|
May
|
Foresight-backed lab services group acquires sample storage specialist | BUSINESS SALE
Biofortuna, a laboratory services group backed by SME invest...
17
|
May
|
Brown & Brown acquires two insurance brokers | BUSINESS SALE
Brown & Brown (Europe) has continued its acquisitive activit...
19
|
Jul
|
Nurofen and Durex maker sells off food business in £3.2bn deal | DIVISION SALE
The UK maker of French’s mustard, Nurofen and Durex co...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.