McCormick & Co. makes second acquisition in weeks with $710 million purchase of Fona International

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McCormick & Co. announced Wednesday that it has purchased Fona International, a flavor company focused on health and nutrition, for $710 million in cash. “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,” said Lawrence Kurzius, chief executive of McCormick, in a statement. “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.” This is the second acquisition for McCormick in recent weeks. In November, the company announced that it had purchased the parent company of Cholula hot sauce for $800 million. McCormick shares have gained 11.3% in 2020 while the S&P 500 index is up 15.4% for the period.
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