Mccormick & Co Stock Price, News & Analysis

McCormick & Company (NYSE: MKC) announced the acquisition of FONA International for $710 million in cash. FONA is a major manufacturer of clean and natural flavors, with annual sales of approximately $114 million. This acquisition will enhance McCormick's flavor portfolio, expand its technology platform, and strengthen its capabilities in health and wellness. McCormick expects this strategic move to be accretive to gross margin and enhance shareholder value, aligning with its goal of leading in flavor innovation.

L Catterton has finalized the sale of Cholula, a prominent hot sauce producer, to McCormick & Company (NYSE: MKC) for $800 million. This transaction marks the conclusion of their partnership with Cholula, which has been positioned well for growth under McCormick's management. Morgan Stanley acted as the lead financial advisor for Cholula, with support from Houlihan Lokey and Kirkland & Ellis as legal advisors for L Catterton. Cholula, known for its unique blend of spices and peppers, has a rich history since its U.S. introduction in 1989, now offering six sauce varieties worldwide.

McCormick & Company (NYSE: MKC) has completed the acquisition of Cholula Hot Sauce for $800 million, enhancing its portfolio in the hot sauce category. The deal, initially announced on November 24, 2020, will be funded through cash and commercial paper. McCormick anticipates that the acquisition will dilute earnings per share (EPS) in fiscal years 2020 and 2021 but is expected to be accretive to adjusted EPS in 2021. The company aims to leverage its operational expertise to drive growth for Cholula.

McCormick & Company (NYSE: MKC) announced it received an unsolicited mini-tender offer from TRC Capital Investment Corporation to buy up to 750,000 shares at $176.38 each, 4.46% below its closing price on November 13, 2020. McCormick advises stockholders not to tender their shares, highlighting that the offer lacks necessary protections of larger tender offers and is below market value. The SEC warns investors about mini-tender offers that may exploit price discrepancies. McCormick emphasizes the importance of consulting brokers for current share prices and exercising caution regarding this unsolicited offer.

L Catterton has announced the sale of Cholula, a hot sauce producer, to McCormick & Company (MKC) for $800 million. The deal, subject to customary closing conditions, comes after L Catterton transformed Cholula since its acquisition in April 2019, enhancing market share and consumer loyalty. Cholula achieved over 50% growth in household penetration during this period. Both companies express excitement over future growth as Cholula joins the McCormick family, leveraging its global resources and operational expertise.

On November 24, 2020, McCormick (NYSE: MKC) announced its agreement to acquire Cholula Hot Sauce for $800 million in cash. This acquisition aims to enhance McCormick's condiment platform and capitalize on the growing hot sauce market, which is experiencing high growth. Cholula, with estimated annual net sales of $96 million, is expected to grow in the mid-to-high single digits. McCormick plans to leverage its operational expertise to enhance Cholula's brand awareness and distribution, potentially driving long-term shareholder value.

The Board of Directors of McCormick & Company announced a quarterly dividend increase from $0.62 to $0.68 per share on its common stocks, reflecting a split-adjusted basis of $0.34 due to a 2-for-1 stock split effective December 1, 2020. The dividend will be payable on January 11, 2021 to shareholders of record on December 31, 2020. This marks the 35th consecutive year of dividend increases, with the current amount double that of 2013.

McCormick & Company (NYSE: MKC) has chosen Tradepoint Atlantic Industrial Park in Sparrows Point, Maryland, for its new Northeast Distribution Center. The facility will span 1.8 million square feet, significantly boosting capacity to meet rising demand in the Americas. Expected to open in late 2022, it will consolidate multiple warehouses and utilize advanced technology for enhanced productivity. This expansion underscores McCormick's commitment to local economic growth and job creation while optimizing its distribution network.

McCormick reported strong Q3 2020 results with an 8% sales rise, driven primarily by a 15% increase in the consumer segment, as customers opted for cooking at home during the pandemic. Operating income reached $273 million, up from $254 million year-over-year. Adjusted earnings per share increased to $1.53, reflecting a 5% growth. The company resumed its fiscal 2020 guidance, expecting sales growth at the upper end of 4%-5%. Additionally, a 2-for-1 stock split was approved for shareholders on November 20, 2020, signaling confidence in future growth.