The Daily Record: McCormick snags natural flavoring manufacturer for $710M

By Johanna Alonso
December 30, 2020 

McCormick announced Dec. 30 that it has acquired FONA International, LLC, a manufacturer of “clean and natural flavors,” for $710 million.

With this acquisition, the Hunt Valley-based company will expand its presence in the clean and natural foods market, bolstered by FONA’s predominantly natural portfolio and its experience with global regulations of clean and natural foods. FONA will also bring expertise in flavoring health and performance products, McCormick said in a news release.

Kurzius also stressed FONA’s strong customer engagement platform, noting that the acquisition will supplement McCormick’s own focus on engagement and “insight-driven” innovation.

FONA, which was founded over 30 years ago and is based in Geneva, IL, makes about $114 million in annual sales, which are expected to increase at a mid-to high-single-digit rate. It is a privately held company.

This acquisition follows McCormick’s acquisition of Cholula Hot Sauce last month, adding the popular product to an existing portfolio of hot sauces and condiments.

In November, McCormick’s board of directors declared an increase in company’s quarterly dividend from $0.62 to $0.68 per share on its common stocks, which will be paid on a split-adjusted basis of $0.34 per share to reflect the 2-for-1 stock split that was effective Dec. 1.

The dividend is payable Jan. 11, 2021, to shareholders of record Dec. 31. This marks the 35th consecutive year that the company has increased its quarterly dividend. At $0.68, the quarterly dividend is double the amount paid in 2013.

To read the complete story, visit The Daily Record website.

Source: The Daily Record