Flavor manufacturer McCormick & Company Inc. has bought Fona International LLC for $710 million.
Fona produces natural flavors for customers in the food, beverage and nutritional markets. “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.” says McCormick CEO Lawrence Kurzius.
Morgan Stanley & Co. and Davis Polk & Wardell LLP are serving as financial advisor and legal counsel, respectively, to McCormick. Houlihan Lokey and Vedder Price PC are serving as financial advisor and legal counsel, respectively, to Fona.