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Cholula and FONA Acquisitions Boost McCormick Sales

Sales from Cholula and FONA, acquired in November 2020 and December 2020, respectively, added 4% to McCormick‘s sales increase in the third quarter of its current fiscal year, ended August 31, 2021.

In that quarter, the company’s sales were $ 1,549.4 million, a year-on-year advance of 8.3 percent.

In this regard, Lawrence E. Kurzius, president and CEO of the company, stated: “Our third quarter results continue to demonstrate the strength and breadth of McCormick’s offering. We increased sales 8% in the third quarter and, in particular, on a two-year basis, sales were up 17%, reflecting our strong growth momentum in both segments and the strong contributions from our acquisitions of Cholula and FONA. ”

Cholula

Previously, on November 30, 2020, Mc Cormick completed the purchase of the parent company of Cholula Hot Sauce (Cholula) from L Catterton.

The purchase price was approximately $ 803 million, net of cash purchased, subject to certain customary purchase price adjustments.

Cholula, a premium Mexican hot sauce brand, is a strong addition to McCormick’s portfolio of global brand flavors, expanding the company’s offering in the high-growth hot sauce category to consumers and foodservice operators.

At the time of the acquisition, Cholula’s annual sales were approximately $ 96 million.

FONA

At the beginning of fiscal year 2021, the company completed the purchase of FONA International and some of its affiliates (FONA), a private company.

The purchase price was around 710 million, net of cash acquired, subject to certain customary purchase price adjustments.

FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base in various applications for the food, beverage and nutrition markets.

At the time of the acquisition, FONA’s annual sales were about $ 114 million.

McCormick reported a sales increase of 8% in the third quarter over the same period last year, including a favorable 3% impact from the coin.

 

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