McCormick strengthens with purchases of Cholula and FONA
McCormick strengthened its production capacity with the purchases of the Cholula and FONA companies.
The company manufactures, markets, and distributes spices, condiments, and other products to the entire food industry: retailers, food manufacturers, and food service companies.
He is also a partner in a number of joint ventures involved in the manufacture and sale of products, the most important of which is McCormick de México.
McCormick’s main sales, distribution and production facilities are located in North America, Europe and China. Additional facilities are based in Australia, India, Central America, Thailand and South Africa.
McCormick acquisitions
At the beginning of fiscal year 2021, the company completed the purchase of some of its affiliates (FONA) from FONA International.
The purchase price was approximately $ 710 million, net of cash purchased, subject to certain customary purchase price adjustments.
FONA is a leading manufacturer of natural flavors providing solutions for a diverse customer base in various applications for the food, beverage and nutrition markets.
The FONA acquisition extends McCormick’s value-added offerings with products that are highly complementary to its existing portfolio.
By combining portfolios and infrastructure, the company has added manufacturing capacity, as well as greater scale, and expects to accelerate its global flavor growth.
At the time of the acquisition, FONA’s annual sales were approximately $ 114 million.
Mexican flavor
On November 30, 2020, the company completed the purchase of the parent company of Cholula Hot Sauce (Cholula) from L Catterton.
The purchase price was approximately $ 803 million, also 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 and accelerating your seasoning growth opportunities with a complementary authentic spicy Mexican flavor.
At the time of the acquisition, Cholula’s annual sales were approximately $ 96 million.
