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McCormick To Acquire Spice and Seasoning Producer Drogheria & Alimentari

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McCormick To Acquire Spice and Seasoning Producer Drogheria & Alimentari

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."

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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

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