McCormick & Company, Inc. (NYSE: MKC), a global leader in flavor, signed an agreement to purchase 100% of the shares of Drogheria & Alimentari (D&A), an Italian leader in spices and seasonings, for approximately €85m ($97m).
The completion of the agreement is expected to occur in May 2015, subject to regulatory approval. The purchase price consisted of a cash payment of approximately €50m and a potential earn out payment in 2018 of up to €35m based upon the performance of the business.
The addition of the D&A business will extend McCormick’s presence in Europe with the American company expecting to work with the current owners to grow sales, particularly in the U.S. and key international markets.
Annual sales are approximately €50m ($57m U.S. dollars), with 80% in Italy and 20% exported to 60 other countries.
Founded in 1880, D&A is a supplier of both brand and private label products, which are exported to 60 other countries. it owns My Spice, Condoro, Condì, Maribù, Exxtrà, and Yes! and represents Toscana in tavola, Gustave Roche, Jules Destrooper, Palme d’OR and Papadopuolos. Acquired in 1985 by Carapelli Spa, an Italian olive oil brand leader in Italy, and owned by the Carapelli and Barbagli families before the acquisition, the company has approximately 120 employees and a manufacturing facility located in Florence, Italy.