McCormick’s £62.5M Italian spice acquisition

Under the terms of the agreement, McCormick gains 100% of the shares of D&A, which boasts annual sales of €50M (£36.8M), 80% of which comes from Italy and 20% from exports.

The purchase price consists of a cash payment of €50M and a further payment in 2018 of up to €35M (£25.7M), based on the performance of the business.

The acquisition is expected to be completed in May this year, subject to regulatory approval.

‘Seasoning leadership’​

“This acquisition complements McCormick’s strong brands across EMEA ​[Europe, Middle East and Africa] and expands McCormick’s current spice and seasoning leadership in Europe with a sizable footprint in Italy,”​ said Malcolm Swift, president of McCormick EMEA, in a statement issued on February 20.

“In addition, there is a strong fit between McCormick, a recognised flavour leader in the region, and D&A, which has a reputation for high quality products and professionalism.”​

Alan Wilson, chairman and ceo of McCormick, said: “We are pleased to expand our portfolio of leading brands around the world with the addition of D&A. As a supplier of both brand and ​[own-label] products, D&A has approximately one third of the spice and seasoning category in Italy and exports its products to 60 other countries.​

‘Strong growth’​

“We anticipate strong growth for these premium products, particularly in the US and key international markets where consumers are seeking unique and authentic ethnic 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.” ​

Founded in 1880, D&A has 120 employees and a modern manufacturing facility located in Florence, Italy. It said it expected to work with the current owners of the business and to grow sales of D&A products at a mid-single digit rate. ​

Spices, seasonings and condiments company McCormick claims annual sales of $4.2bn (£2.7bn). Its brands include Schwartz flavour mixes and Hammonds sauces.