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Key Takeaways
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Bloomberg reported Monday night that spice maker McCormick is in talks to acquire Sauer Brands, another food company.
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Sauer is best known for its Duke's Mayonnaise brand, and the deal could value Sauer at over $1 billion, Bloomberg reported.
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Sauer's private equity parent Falfurrias Capital Partners acquired the brand in 2019, and Reuters reported in April that it was considering a sale of the brand.
McCormick (MKC), maker of a wide variety of spices and condiments, is reportedly in talks to acquire Sauer Brands for north of $1 billion from its current owner, Falfurrias Capital Partners, according to a Monday evening report from Bloomberg.
Sauer has its own line of spices, and is best known for its Duke's brand of mayonnaise and other condiments. The spices and condiment maker was acquired by the private equity firm Falfurrias in 2019.
Reuters reported in April, citing people familiar with the matter, that the private equity firm was considering a sale of the brand. Bloomberg, also citing people familiar, reported Monday that McCormick is now in talks to acquire the brand in a deal likely valuing the company at over $1 billion, though nothing has been finalized.
McCormick and Falfurrias did not immediately respond to a request for comment Tuesday morning.
McCormick's products range well beyond its namesake line of spices and seasonings, as it also owns several condiment brands like French's mustard, Frank's Red Hot, and Cholula hot sauce.
McCormick shares were little changed Tuesday morning, and have gained about 17% since the start of the year.
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