US: McCormick hints at more acquisitions

By Petah Marian | 3 June 2011

McCormick & Co. has a "robust pipeline" of acquisition targets, the US spice maker's CFO has revealed, a day after the company announced a new venture in India.

Gordon Stetz told an analyst conference in the US there was a "robust environment" for M&A. He added that the company has spent "a lot of time in India and China looking for targets".

However, talking to the Sanford Bernstein & Co. Strategic Decisions Conference, Stetz said McCormick would consider acquisitions in developed markets. He said the Schwartz maker would look at companies that "stand for flavour", with strong brand names that the firm felt consumers could align with the McCormick brand.

Yesterday, McCormick announced plans to set up a joint venture in India with local food company Kohinoor Foods.

McCormick chairman, president and CEO Alan Wilson has said the manufacturer plans to expand its business in the country through the Kohinoor Speciality Foods India joint venture by moving into "under-served markets", launching more products and deevloping an offer for foodservice customers.

Wilson suggested McCormick, which first entered India in 1994, would look to set up more ventures in the country. The company, he said, "will continue to explore further brand alliances and acquisitions, as well as pursue industrial opportunities".

Sectors: Canned food, Cereal, Commodities & ingredients, Condiments, dressings & sauces, Dried foods, Emerging markets, Mergers & acquisitions

Companies: McCormick & Co.