Schwartz owner spices up company with Reckitt deal

Slough-based Reckitt Benckiser has completed its $4.2bn (£3.2bn) sale of its food business to the US owner of the Schwartz herbs and spices brand.

McCormick & Co agreed the deal after previous hopefuls, Anglo-Dutch giant Unilever and Spam-maker Hormel Foods, decided not to bid, says the Financial Times.

Lawrence Kurzius, chief executive at McCormick, said the purchase would enable the company "to become a one-stop shop for condiment, spice and seasoning needs".

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Reckitt's food business includes French's mustard and boasts profit margins that are "high by industry standards" at nearly 29 per cent. It made £152m in pre-tax earnings last year.

However, despite it's "history of outperformance", the unit was "nevertheless non-core", said the company.

Rakesh Kapoor, chief executive, said the sale took Reckitt another step closer to becoming a "global leader in consumer health and hygiene", reports the BBC.

It already owns the likes of Durex condoms, Nurofen painkillers and Cillit Bang bathroom cleaner brands and in February, agreed a $17.9bn (£13.8bn) buyout of baby formula-maker Mead Johnson.

The BBC says the sale will "pay off debt" taken on to complete the Mead Johnson deal.

Reckitt's shares were up 1.4 per cent to £79.21 this afternoon.