McCormick (NYSE:MKC) & Co., the food company known for its spices and condiments, is currently in negotiations to purchase Sauer Brands Inc., which includes the well-known Duke’s mayonnaise, from Falfurrias Capital Partners (WA:CPAP), according to a report from Bloomberg. Sources close to the matter suggest that the deal could place the value of Sauer Brands at upwards of $1 billion. However, the discussions are private, and there has been no final agreement as of now. The possibility remains that the talks may not result in a sale or that another purchaser could step in.
The potential acquisition comes as McCormick continues to expand its portfolio. The company, headquartered in Hunt Valley, Maryland, has a history of significant purchases, including the acquisition of flavor manufacturer Fona International for $710 million and hot sauce brand Cholula for $800 million in 2020. Following these acquisitions, McCormick's shares have seen a rise of approximately 17% this year, bringing its market valuation to around $21.5 billion.
Sauer Brands, known for Duke’s mayonnaise—a product with deep roots in the South—has a rich history dating back to its acquisition of the mayonnaise recipe in 1929 from Eugenia Duke. Duke initially sold sandwiches to soldiers in the Greenville, South Carolina area. The company, now under the name Sauer Brands, offers a range of other condiments, spices, and herbs. Falfurrias Capital Partners, based in Charlotte, North Carolina, took ownership of C.F. Sauer Co. in 2019 and initiated the process to sell the company earlier this year.
Both McCormick and Falfurrias have refrained from commenting on the ongoing discussions, with a McCormick spokesperson stating that the company does not comment on rumors or speculation, and a representative for Falfurrias also declining to comment. The outcome of these talks is yet to be determined, as the food industry awaits the potential consolidation.
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