Durex owner Reckitt Benckiser sells sauces business for $4.2bn

Durex owner Reckitt Benckiser has sold its food business to a US firm in a deal worth $4.2bn (£3.2bn).

French's Food, which includes the French's mustard and Cattlemen's brands, was sold to McCormick & Company following a strategic review of the unit, said the FTSE 100 consumer goods giant.

McCormick saw off competition from Unilever and Hormel Foods, the US owner of Spam, to buy the division.

French's products, which also includes BBQ sauce and Worcestershire sauce, sell over 160 million bottles a year in over 50 countries.

The move is part of the Reckitt Benckiser's plan to fund its £14.3bn purchase of US baby food maker Mead Johnson Nutrition, agreed in February.

Reckitt Benckiser's food business makes up just 5% of Reckitt's global sales, and is dwarfed by its health and hygiene products such as Nurofen and Dettol.

Reckitt Benckiser chief executive Rakesh Kapoor said: "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."

McCormick chief executive Lawrence Kurzius, said the deal enables his group "to become a one-stop shop for condiment, spice and seasoning needs."

The companies expect the deal to close in the autumn, subject to regulatory approvals.