McCormick quick news update

McCormick finalized the acquisition of Cholula Hot Sauce yesterday, for a purchase price of $800m (financed by cash on hand and commercial paper). The transaction should be accretive to FY21 adjusted earnings.

Cholula Hot Sauce is a premium Mexican hot sauce, broadening MKC’s offering in the high growth hot sauce category. A few years ago, MKC acquired RedHot a US hot sauce brand.

 

The company also went through a 2 for 1 stock split, finalized today. The last time the company completed one was in 2002.

 

Julie S. Praline

Director, Equity Analyst

 

Direct: 617.226.0025

Fax: 617.523.8118

 

Crestwood Advisors

One Liberty Square

Suite 500

Boston, MA 02109

 

www.crestwoodadvisors.com