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
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Suite 500
Boston, MA 02109