The business complements McCormick’s strength in Western Europe and recent joint venture in Turkey. McCormick intends to invest in the growth of the Kamis brand and to continue to operate the business from the Kamis facility, located near Warsaw.
Annual sales of the business are approximately $103m in US dollars and McCormick expects profit from the business to add approximately $0.06 to earnings per share in 2012.
Sales of Kamis have increased at a mid-single digit rate and McCormick intends to continue this growth through new product introductions, brand marketing programmes and penetration of other markets in Central and Eastern Europe.
The purchase price for this business was $286m, which was financed with a combination of cash and debt. In the fourth quarter, McCormick will record approximately $3m of fees and other costs related to the completion of this transaction which are expected to reduce earnings per share $0.02.
McCormick’s growth strategy includes expansion into emerging markets where consumers have an increasing interest in new flavours and branded food products.
Source: McCormick
© FoodBev Media Ltd 2024