McCormick has been strategically increasing its presence through acquisitions, in order to grow its spices and seasonings portfolio. McCormick’s acquisition of the food division of RB Foods, a British consumer products company, in August 2017, is the largest deal for the company till date. With iconic brands like Frank's RedHot Hot Sauce and French's Mustard, French's Crispy Vegetables and Cattlemen's BBQ Sauce, RB Foods is likely to continue being an asset for McCormick’s spices portfolio. Encouragingly, the acquisition of Frank’s and French’s brands drove McCormick’s sales by 13% in the second quarter, with gains from the buyout witnessed at both segments. Evidently, Frank’s and French’s brands boosted consumer and flavor solutions segments’ sales by 14% and 12%, respectively. Also, additional sales from these acquired brands are expected to boost the top line by 8% in fiscal 2018.
Source: Zacks