McCormick in Negotiations to Acquire Sauer Brands

McCormick (NYSE:MKC) & Co., known for its spices and condiments, is currently negotiating to purchase Sauer Brands Inc., which includes the popular Duke’s mayonnaise, from Falfurrias Capital Partners (WA:CPAP), according to a Bloomberg report. Sources suggest that the deal could value Sauer Brands at over $1 billion. However, discussions are private, and no final agreement has been reached yet. There's also a possibility that discussions may not result in a sale or that another buyer could emerge.

The potential acquisition aligns with McCormick’s strategy to expand its portfolio. Headquartered in Hunt Valley, Maryland, McCormick has a history of significant acquisitions, including flavor manufacturer Fona International for $710 million and hot sauce brand Cholula for $800 million in 2020. Following these acquisitions, McCormick's shares have risen about 17% this year, boosting its market valuation to roughly $21.5 billion.

Sauer Brands is renowned for Duke’s mayonnaise, which has historical roots dating back to 1929 when Eugenia Duke sold sandwiches to soldiers in Greenville, South Carolina. The company provides various condiments, spices, and herbs. Falfurrias Capital Partners based in Charlotte, North Carolina, acquired C.F. Sauer Co. in 2019 and began seeking to sell the company earlier this year.

Both McCormick and Falfurrias have refrained from commenting on the ongoing discussions. A McCormick spokesperson mentioned that the company does not address rumors or speculation, and a representative for Falfurrias also declined to comment. The outcome of these discussions remains uncertain, as the food industry closely watches this potential consolidation.

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