Consumer company Reckitt Benckiser may sell its food branch, consisting of French's Foods' sauces. The money would be used to partially pay for children's food manufacturer Mead Johnson Nutrition's acquisition.
2 billion pounds
French’s Foods' 2016 turnover was 411 million pounds (483 million euro), which is about 4 % of Reckitt Benckiser's total turnover and it also contributes to the notion that it is a non-essential division, which in turn is why the company is now considering its sale.
The sale should result in about 2 billion pounds (2.35 billion euro), money that will partially help cover the cost to acquire Mead Johnson Nutrition, which cost 16.6 billion dollars (15.6 billion euro).
French’s Foods did not perform that badly over the past year, with a 5 % like-for-like turnover increase, which was above the market average. Its adjusted company profit also reached a decent 118 million pounds (139 million euro).
It is not the only company looking to sell, because only a few weeks ago, Unilever said it was looking to sell several of its food brands, including Becel. Kraft Heinz and several investment firms already expressed an interest. Both moves seem to indicate the food industry is about to shift.