Global food manufacturer McCormick acquired Reckitt Benckiser’s Food for $4.2 billion, subject to certain customary purchase price adjustments.

“The acquisition of RB Foods strengthens McCormick’s flavor leadership with the addition of the iconic French’s and Frank’s RedHot brands to our portfolio, which will become our number two and number three brands, respectively,” said Lawrence E. Kurzius, chairman, president and CEO.

“This transaction reinforces our focus on growth, reflecting McCormick’s commitment to making every meal and moment better and driving significant shareholder value.”

According to a related 8-K filing, McCormick expects to finance the transaction with $3.7 billion of new debt, which will include pre-payable terms loans and senior unsecured notes issued in the capital markets and $500 million in equity through a follow-on offering. McCormick has entered into a commitment letter, dated July 18, 2017, with Merrill Lynch, Bank of America, Credit Suisse Securities and Credit Suisse. Bank of America and Credit Suisse have agreed to provide a senior unsecured 364-day bridge loan facility of up to $4.2 billion in the aggregate for the purpose of providing the financing necessary to fund the acquisition.

Commitments under the bridge facility will be reduced in equivalent amounts if McCormick closes any term loans and/or the issuance of equity or notes in a public offering or private placement prior to the consummation of the transaction. Loans under the bridge facility will be prepaid in equivalent amounts upon the incurrence by McCormick of term loans and/or the issuance of equity or notes in a public offering or private placement and upon other specified events, in each case subject to certain exceptions set forth in the commitment letter.

Credit Suisse and Cleary Gottlieb Steen & Hamilton are serving as financial advisor and legal counsel, respectively, to McCormick in connection with the transaction.