MCCORMICK & CO INC acquired FONA International, LLC for $710 million (approximately $708 million net of cash acquired), a transaction completed in December 2020, structured as all cash.
FONA International, LLC operates in Flavor Solutions - Clean & natural flavors, is based in United States. FONA International is a privately held, leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets.
The acquisition of FONA reinforces McCormick's global growth strategy as FONA expands the breadth of its flavor solutions segment into attractive categories, extends its technology platform and strengthens its capabilities. It accelerates the strategic migration of McCormick's portfolio to more value-added and technically insulated products.
Clean and natural flavor capabilities highly complementary to McCormick's portfolio; expected to be accretive to gross margin and to migrate the portfolio toward value-added, technically insulated products. Added manufacturing capacity and technology platform; expected gross-margin accretion as portfolio shifts to value-added products. McCormick Flavor Solutions segment FY2021 10-K: "The purchase price was approximately $708 million, net of cash acquired. FONA is a leading manufacturer of clean and natural flavors... The acquisition of FONA broadens our value-add offerings with products that are highly complementary to our existing portfolio."
The acquisition of FONA reinforces McCormick's global growth strategy as FONA expands the breadth of our flavor solutions segment into attractive categories, as well as extends our technology platform and strengthens our capabilities. This acquisition also accelerates the strategic migration of our portfolio to more value-added and technically insulated products and thus, is expected to be accretive to gross margin.Lawrence E. Kurzius, Chairman, President & CEO, McCormick & Company
Advisory firms were not disclosed for this transaction.