Fresh off the recent purchase of the Cholula hot sauce brand last month, McCormick (NYSE: MKC) is at it again. The spice and flavorings giant on Wednesday announced that it struck a deal to acquire FONA International for just over $700 million.
The purchase will strengthen McCormick’s portfolio in some attractive niches, including natural foods and citrus and fruit flavorings. It should also add over $100 million in annual sales to the business while pushing profitability higher.
“The acquisition accelerates the strategic migration of our portfolio to more value-added and technically insulated products,” CEO Lawrence Kurzius said in a press release. Besides the earlier $800 million purchase of Cholula, McCormick has made other bold bets in recent years, including its $4 billion French’s and Frank’s buyout in 2017.