McCormick Completes Acquisition of Lawry's
McCormick & Company Inc. completes the purchase of the assets of Lawry's from Conopco Inc., an indirect subsidiary of Unilever N.V., for $604 million in cash. In November last year, the company had announced that it had reached an agreement to acquire Lawry's.
Alan D. Wilson, president and CEO of McCormick states, "Lawry's has a strong heritage in delivering distinctive full flavors to a variety of food. This is a well-known brand among consumers and an excellent addition to our portfolio of leading brands. In particular, the wet marinade products will extend our broad range of flavor solutions into an attractive and growing category. We expect to drive the Lawry's business by shifting focus to a dedicated growth strategy. This will include building brand awareness and trial with marketing programs, insight-based innovation behind new products and increased distribution of existing items. We anticipate a straight-forward integration of this business."
The Lawry's business includes a full line of seasoning blend products under the Lawry's and Adolph's brands that are marketed in grocery stores and other consumer outlets, and account for approximately 70 percent of sales. Another 23 percent of sales are Lawry's wet marinades which are also sold at retail and lead the category in the United States. Sales to food service customers represent the remaining 5 percent to 10 percent. The acquisition includes the rights to the brands as well as related inventory and a small number of dedicated production lines. It does not include any manufacturing facilities or employees.
Alan D. Wilson, president and CEO of McCormick states, "Lawry's has a strong heritage in delivering distinctive full flavors to a variety of food. This is a well-known brand among consumers and an excellent addition to our portfolio of leading brands. In particular, the wet marinade products will extend our broad range of flavor solutions into an attractive and growing category. We expect to drive the Lawry's business by shifting focus to a dedicated growth strategy. This will include building brand awareness and trial with marketing programs, insight-based innovation behind new products and increased distribution of existing items. We anticipate a straight-forward integration of this business."
The Lawry's business includes a full line of seasoning blend products under the Lawry's and Adolph's brands that are marketed in grocery stores and other consumer outlets, and account for approximately 70 percent of sales. Another 23 percent of sales are Lawry's wet marinades which are also sold at retail and lead the category in the United States. Sales to food service customers represent the remaining 5 percent to 10 percent. The acquisition includes the rights to the brands as well as related inventory and a small number of dedicated production lines. It does not include any manufacturing facilities or employees.