RTTNews | Nov 24, 2020 06:21AM EST

06:20 Tuesday, November 24, 2020 (RTTNews.com) - McCormick & Co., Inc. (MKC) agreed to acquire hot-sauce maker Cholula from private-equity firm L Catterton for $800 million in cash.

McCormick expects the transaction to be accretive to adjusted earnings per share in 2021. It expects to complete the deal by the end of the calendar year. The transaction will be financed with a combination of cash on hand and commercial paper.

Upon closing, McCormick will incur certain transaction costs that will impact earnings per share.

Cholula's annual net sales are about $96 million and are expected to grow mid-to-high single digits in a normalized environment beyond the COVID-19 pandemic.

L Catterton has owned the Cholula brand since early 2019.

Read the original article on RTTNews ( https://www.rttnews.com/3148333/mccormick-to-buy-hot-sauce-maker-cholula-for-800-mln-in-cash-quick-facts.aspx)

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