Flavours company McCormick has confirmed its takeover of Italian spices and seasonings manufacturer Drogheria & Alimentari for €85m.
The purchase price consists of a cash payment of approximately €50m and a potential performance-related earn out payment in 2018 of €35m. Drogheria & Alimentari is Italy’s market leader in spices and seasonings, with annual sales of €50m.
The acquisition will extend US-based McCormick’s European presence with a strong foothold in Italy, where 80% of Drogheria & Alimentari’s business takes place.
McCormick chairman and CEO Alan Wilson said: “We are pleased to expand our portfolio of leading brands around the world with the addition of Drogheria & Alimentari. As a supplier of both brand and private label products, D&A has approximately one third of the spice and seasoning category in Italy and exports its products to 60 other countries. We anticipate strong growth for these premium products, particularly in the US and key international markets where consumers are seeking unique and authentic ethnic flavors. The owners and employees of D&A have built a great business and we look forward to working with them to achieve continued success.”
Malcolm Swift, president of McCormick Europe, Middle East and Africa (EMEA), added: “This acquisition complements McCormick’s strong brands across EMEA and expands McCormick’s current spice and seasoning leadership in Europe with a sizable footprint in Italy. In addition, there is a strong fit between McCormick, a recognised flavour leader in the region, and Drogheria & Alimentari, which has a reputation for high quality products and professionalism.”
The acquisition will be completed in May, subject to regulatory approval.
© FoodBev Media Ltd 2021
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