US food manufacturing firm McCormick has announced that it is to purchase the Italian spice and seasoning producer Drogheria & Alimentari. A leader in spices and seasonings in Italy, Drogheria & Alimentari has annual sales of approximately €50 million, with 80 per cent of these generated in Italy and 20 per cent exported to 60 other countries.
McCormick agreed to acquire the business for approximately €85 million. The purchase price consists of a cash payment of approximately €50 million and a potential earn-out payment, in 2018, of up to €35 million, based upon the performance of the business.
A global leader in flavouring products, McCormick generates $4.2 billion in annual sales, manufacturing and distributing spices, seasoning mixes, condiments and other products to the food industry – retail outlets, food manufacturers and food service businesses.
The addition of the business extends McCormick’s presence in Europe with a strong foothold in Italy.
Speaking on the news of the acquisition, Alan Wilson, chairman & CEO of McCormick 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."
He continued, "We anticipate strong growth for these premium products, particularly in the US and key international markets where consumers are seeking unique and authenticethnic flavours. 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."
@ 2015 ESM - European Supermarket Magazine
