McCormick Sells Unit to Kerr Group
SPARKS, Md. (AP) _ McCormick & Co. announced Thursday that it has completed the sale of its packaging business to the Kerr Group for $142.5 million.
Kerr paid $132.5 million in cash and will pay the remaining $10 million over five years, based on certain performance objectives. McCormick, a spice and flavorings giant, and Kerr have also entered into a multiyear supply agreement, McCormick said.
The Kerr Group is a Lancaster, Pa.-based packaging corporation.
McCormick’s packaging business consists of Easthampton, Mass.-based Tubed Products and Anaheim, Calif.-based Setco Inc.
McCormick acquired Tubed Products, which employs about 700 people at its Easthampton headquarters and another 135 at its plant in Oxnard, Calif., in 1968. McCormick acquired Setco in 1981.
Tubed Products makes plastic tubes for such products as makeup, sunscreen, and hair gel. The 56-year-old company’s customers include Avon, L’Oreal and Unilever.
On the Net:
Kerr Group http://www.kerrgroup.com