McCormick, a leading US producer of spices and flavourings, has announced that it has signed a definitive agreement to acquire 100% of the shares of the Italian company Drogheria & Alimentari (D&A).
Founded in 1880, D&A has approximately 120 employees and a manufacturing facility located in Florence, Italy. Like McCormick, the company is active in the spices and seasonings sector.
“We are pleased to expand our portfolio of leading brands around the world with the addition of Drogheria & Alimentari”, commented Alan Wilson, Chairman & CEO of McCormick. “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”.
McCormick said that the deal would help to expand its presence in Europe, and would also help meet growing demand for premium spice and seasoning products, particularly in the USA.
The transaction is valued at approximately €85 million (about $97 million), with an initial payment of €50 million in cash.
The purchase, which is subjected to closing adjustments, is expected to be finalised by May 2015.