US sauces and spices heavyweight McCormick & Co. is said to be in talks to buy local peer Sauer Brands.
News agency Bloomberg, quoting people with knowledge of the matter, said the French’s mustard and Frank’s RedHot sauce brands owner is negotiating a deal with Sauer’s private-equity owner Falfurrias Capital Partners.
It suggested a transaction could value Richmond, Virginia-based Sauer, best known for the Duke’s mayonnaise brand, at more than $1bn, but stressed that sources had told it that agreement had not yet been reached.
It was reported back in April that Falfurrias was exploring a sale of 137-year-old Sauer and was working with investment banks Morgan Stanley and William Blair to gauge interest from potential buyers.
Just Food contacted Maryland-based McCormick and Sauer Brands, seeking a response to the Bloomberg story. McCormick said it does not comment on rumours or speculation.
Falfurrias acquired Sauer Brands, then known as C.F. Sauer Co., in 2019. The company’s other brands include The Spice Hunter and Bama.
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By GlobalData
In October, McCormick, which has been acquisitive in recent years, said it is intent on returning to “healthy volume growth pretty quickly”, as it presented third-quarter results.
Group volumes climbed 1% in the third quarter, weighed down by pricing, but there was a split between McCormick’s consumer business and what it calls flavour solutions, or foodservice.
