Reckitt Benckiser earmarks GBP 2bn food arm for sale - report
Reckitt Benckiser [LON:RB], the UK-based health, hygiene and home products company, is preparing to sell its food division, The Sunday Times reported. Senior sources cited in the report said the sale proposal has been outlined to the company’s banks, although insiders cautioned the disposal plan is not yet a definite course of action.
Reckitt has been interviewing potential advisers for the deal, the item reported.
The sale of the non-core subsidiary could be worth in excess of GBP 2.3bn (USD 3bn), City sources estimated. The proceeds will help Reckitt finance its recent GBP 14.3bn acquisition of Mead Johnson Nutrition [NYSE:MJN], which incurred significant debt, the report pointed out.
Chicago-based food giant Kraft Heinz [Nasdaq:KHC] is expected to be interested in the food-unit sale but may run into competition hurdles, the report said. Interest from US-based private-equity companies is also expected, the item reported.
Reckitt’s food business includes the Frank’s Red Hot range of sauces and French’s mustard, the report noted.
The company declined to make any comment on the matter, the item reported.
The original report appeared in The Sunday Times, Business section, page 1