McCormick & Company Is Determined to Expand
"Acquisitions are contributing approximately one-third of our sales growth.
Since the beginning of 2015, we have completed seven acquisitions, which
are driving sales in both our consumer and industrial segments. We have
a robust pipeline of acquisition opportunities that meet the growing demand
for flavor and health. In addition to bolt-on opportunities, we are seeking
larger acquisitions. Geographically, our focus is on acquisitions that build scale
where we currently have presence in both developed and emerging markets."
--McCormick & Company 3rd Quarter 2017 "10-Q" earnings filing, 9/28/2017
In a time of uncertainty in the consumer packaged-goods (CPG) industry, McCormick & Company (NYSE: MKC) seems certain of a few things. The company is bent on maintaining a swift pace of innovation. Its launch of 40 new products this fall is geared toward foodies, from the introduction of beef and chicken-bone broths in its Kitchen Basics line to Japanese ramen and soba noodles within its Simply Asia label. And as the quote above illustrates, McCormick will assuredly keep up the pace of acquisitions that has enabled it to expand its top line during a period in which many CPG competitors are flatlining.
McCormick completed its mammoth $4.2 billion acquisition of Reckitt Benckiser's (NASDAQOTH: RBGLY) food division, "RB Foods," on August 17th. In the company's third-quarter 2017 earnings report, shareholders can view the balance-sheet allocation of this price tag, which reveals the extent of management's desire to obtain market-leading properties like French's mustard and Frank's RedHot hot sauce, the two major condiments acquired in the deal.
Source: Fool.com
Mccormick & Comp. Stock
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