McCormick strengthens its leadership in clean and natural flavor
McCormick & Company Inc., a global leader in flavor, recently announced that it has purchased 100 per cent of the shares of FONA International, LLC and certain of its affiliates (FONA), a privately held company. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets.
McCormick will finance the transaction with cash and commercial paper. While this transaction will increase McCormick’s net-debt-to-adjusted EBITDA ratio, the Company is committed to a strong investment-grade credit rating, paying down debt with anticipated strong cash flow generation and maintaining its dividend policy.
FONA’s annual sales are approximately $114 million and are expected to grow at a mid-to high-single-digit rate. Founded more than 30 years ago, FONA is a leading independent manufacturer of flavors, with a focus on nutritional and natural products and a well-recognized brand that McCormick plans to retain. The business is headquartered in Illinois and has approximately 220 employees with a state-of-the art manufacturing and technical innovation center.