McCormick Eyes $1 Billion Deal To Acquire Duke's Mayonnaise Maker

McCormick & Company, Inc. MKC is considering buying Sauer Brands from Falfurrias Capital Partners at a valuation of over $1 billion, Bloomberg cites familiar sources.

In 2019, Falfurrias bought Sauer Brands, famous for its Duke’s mayonnaise brand. The company also produces spices, herbs and other condiments.

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In 2020, McCormick purchased flavor manufacturer Fona International for $710 million and hot sauce maker Cholula for $800 million.

McCormick held $200.8 million in cash and equivalents as of Aug. 31, 2024.

McCormick reported third-quarter sales of $1.68 billion, above the analyst consensus estimate of $1.67 billion. The adjusted EPS of 83 cents topped the street view of 67 cents.

McCormick expects fiscal 2024 sales growth of (-1)%-1%. The company expects fiscal year 2024 EPS of $2.85-$2.90, compared to the analyst consensus estimate of $2.86.

In October, on CNBC’s “Mad Money Lightning Round,” Jim Cramer recommended buying McCormick, citing it as an excellent idea.

McCormick stock surged over 15% year-to-date. Investors can gain exposure to the stock through Timothy Plan US Large/Mid Cap Core ETF TPLC and VictoryShares US 500 Volatility Wtd ETF CFA.

MKC Price Action: McCormick & Company stock is up 0.64% at $80.68 Tuesday at publication.

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