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Spice seller McCormick scraps plan to buy Premier Foods

NEW YORK, N.Y. – Spice and herb seller McCormick is scrapping its plan to buy British food maker Premier Foods, after takeover talks between the two companies failed.

Last month, Premier rejected McCormick’s most recent offer to buy the company for about $764 million.

McCormick is best known for its spices with bright red labels. The Sparks, Maryland, company also sells Zatarain’s rice mixes and Stubb’s barbecue sauce.

Premier’s brands in the U.K. include OXO stock cubes and Mr. Kipling packaged cakes.

McCormick & Co. shares fell $1.61, or 1.6 per cent, to $97.25 in morning trading Wednesday. Shares of Premier Foods PLC dropped more than 24 per cent on the London Stock Exchange.