McCormick in Talks to Acquire Duke's Mayonnaise Owner for Over $1 Billion - Bloomberg

McCormick & Co., a food company known for its spices and sauces, is reportedly in talks to acquire Sauer Brands Inc., which includes the famous Duke's mayonnaise from Falfurrias Capital Partners, according to Bloomberg. Sources close to the matter indicate that the deal could value Sauer Brands at over $1 billion. However, discussions are confidential, and no definitive agreement has been reached so far. There is also the possibility that the negotiations may not result in a sale or that another buyer may emerge.

The potential acquisition is seen as part of McCormick's efforts to expand its portfolio. The Hunt Valley, Maryland-based company has made significant acquisitions, such as purchasing flavor manufacturer Fona International for $710 million and hot sauce brand Cholula for $800 million in 2020. Following these acquisitions, McCormick's shares have risen by approximately 17% this year, increasing the company’s market value to about $21.5 billion.

Sauer Brands, known for Duke's mayonnaise, which has deep roots in the South, has a rich history that began in 1929 when it purchased the mayonnaise recipe from Eugenia Duke. Duke initially sold sandwiches to soldiers in the Greenville, South Carolina area. Now operating under the name Sauer Brands, the company offers a variety of sauces, spices, and herbs. Falfurrias Capital Partners, based in Charlotte, North Carolina, acquired C.F. Sauer Co. in 2019 and initiated a process to sell the company earlier this year.

Both McCormick and Falfurrias refrained from commenting on the ongoing negotiations. A McCormick spokesperson stated that the company does not comment on rumors or speculation, while a representative from Falfurrias also declined to comment. As the food industry anticipates potential consolidation, the outcome of these negotiations remains uncertain.