McCormick sheds non-core business
Brokers, a leftover slice from a UK spice purchase in the 1980s.
US spice giant McCormick has sold the assets of Jenks Sales Brokers, a leftover slice from a UK spice purchase in the 1980s.
The Jenks business was acquired as a result of McCormick's acquisition of Paterson Jenks in 1984. The company's primary objective in that transaction was to acquire the Schwartz brand, the market leader in spices and seasonings in the UK.
The Jenks management group paid McCormick US$5.9 million (€5.12m) in cash for the business.
"McCormick indicated last year that Jenks was a non-core business and under review. We believe this transaction will improve McCormick's long-term value for its shareholders, create an opportunity for the Jenks employees and best serve the customers and principals of Jenks," said Robert J. Lawless, chairman, president and CEO of McCormick.
The Jenks brokerage business provides sales and distribution services for other consumer product companies. Jenks has annual sales of approximately US$100 million.
Last month McCormick saw profits for the second-quarter climb by 19 per cent, helped by solid sales growth and interest income from a purchase-price adjustment.
Also last month, in a drive to concentrate on the core food business - flavours, spices and seasonings - McCormick announced the sale of its packaging business to Kerr Group for $142.5 million.
