Slough-based Reckitt Benckiser has sold its sauces business, which includes French's mustard and Frank's Red Hot sauce, to McCormick & Co in a deal worth £3.2bn.
US-based McCormick & Co, the owner of Schwartz herbs and spices, saw off competition from consumer giant Unilever and Hormel Foods, the US owner of Spam, to buy the division.
The funds from the sale will be used to pay off the debt that Reckitt Benckiser incurred buying Mead Johnson, the baby food manufacturer, for £14.3bn in February.
The chief executive of Reckitt Benckiser, Rakesh Kapoor, said, 'Following the acquisition of Mead Johnson Nutrition, this transaction marks another step towards transforming RB into a global leader in consumer health and hygiene.'
Last year, McCormick attempted to buy Premier Foods, the maker of Mr Kipling cakes and Bisto gravy, but was unable to offer a high enough price for the group.
