McCormick readies to become area’s second-largest public company - The Baltimore Banner
Article excerpt
Baltimore’s largest pantry built itself up through a series of deliberate acquisitions, adding a spice here, a sauce there. But McCormick & Co.’s massive deal with Unilever is by far its most ambitious - and will require rearranging the cupboard. That could ultimately spell layoffs, though the company says it will be “business as usual” until McCormick formally acquires the foods division of Unilever, the European consumer goods giant, next summer. Hunt Valley-based McCormick, the world’s largest spice producer, is expected to nearly triple in size with the combination, first announced in March. Executives laid out the road map Wednesday during a Barclays-hosted consumer staples conference in Boston. Unilever, known for personal care brands such as Dove, will need to fully spin off its food arm. Those food products, including Hellmann’s Mayonnaise, will then fall under McCormick’s umbrella, but integration will continue through the end of the decade, executives said. Brendan Foley, who will remain chairman, president and CEO of the new company, positioned McCormick as well suited for growth and said the new company will benefit from its combined network. He cited Hellmann’s in pointing to “mayonnaise growth” in U.S. households and elsewhere, and he repeated a common chorus: that the flavor market is resilient, even as eating habits shift. During about 20 minutes of remarks...
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Last year, McCormick brought in about $7 billion in revenue, just behind T.
