McCormick Sells U.K. Brokerage Business
SPARKS, Md., Jul 2, 2003 /PRNewswire-FirstCall via COMTEX/ -- McCormick & Company, Incorporated (NYSE: MKC) today announced that it has sold the assets of Jenks Sales Brokers, a brokerage business in the United Kingdom, to Jenks' senior management.
The Jenks business was acquired as a result of McCormick's acquisition of Paterson Jenks plc 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 U.K. The Jenks brokerage business provides sales and distribution services for other consumer product companies. Jenks has annual sales of approximately $100 million.
The Jenks management group has paid McCormick $5.9 million in cash for the business. In 2003, earnings per share from discontinued operations from Jenks will include approximately $0.01 for the loss on the sale of this business. A process is now underway for the orderly transition of this business.
Robert J. Lawless, Chairman, President & CEO of McCormick, stated, "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."
Reclassification of Jenks Results
The sale of the assets of Jenks will be reported as a discontinued operation beginning in the third quarter of 2003. For detailed information on reclassifications in previously issued financial statements necessary to reflect Jenks, as well as the previously announced packaging business sale as discontinued operations, please visit www.mccormick.com, under Company Information, Investor Information, "Reclassification of Business Results."
Forward-looking Statement
Certain information contained in this release, including expected synergies and projections, are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could be materially affected by external factors such as: actions of competitors, customer relationships, fluctuations in the cost and availability of supply chain resources and foreign economic conditions, including currency rate fluctuations. The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise.
About McCormick & Company, Incorporated
McCormick & Company, Incorporated is the global leader in the manufacture, marketing and distribution of spices, seasonings and flavors to the entire food industry - to foodservice and food processing businesses as well as to retail outlets. In addition, the packaging group manufactures and markets specialty plastic bottles and tubes for personal care and other industries. McCormick reported 2002 net sales of $2.3 billion. For more information about McCormick, visit the Company's website on the Internet at: www.mccormick.com.
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