Spice Maker McCormick to Acquire Brand Aromatics.
M2 EQUITYBITES-March 10, 2015-Spice Maker McCormick to Acquire Brand Aromatics
(C)2015 M2 COMMUNICATIONS http://www.m2.com
10 March 2015 - US-based spice maker McCormick and Co., Inc. (NYSE: MKC) has acquired 100% of the shares of Brand Aromatics, the company said.
Brand Aromatics is a supplier of flavours, marinades, and broth and stock concentrates to the packaged food industry. Annual sales were USD 28m in 2014 and are expected to grow at a mid-single digit rate.
McCormick has acquired the business for approximately USD 63m in cash.
The addition of Brand Aromatics expands the breadth of value-added products in McCormick's industrial business.
Founded in 1997, Brand Aromatics has 40 employees and supplies a range of savory products to the packaged food industry.
The company's headquarters, R/D facility, a manufacturing facility and distribution center are located in Lakewood, New Jersey. The purchase price for Brand Aromatics is approximately USD 63m subject to certain closing adjustments. The transaction multiple is expected to be approximately 10 times EBITDA (earnings before interest, tax, depreciation and amortization).
Due to the estimated impact of transaction, integration and financing costs, McCormick expects no earnings per share impact in 2015.
McCormick posts USD 4.2bn in annual sales. The company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry retail outlets, food manufacturers and foodservice businesses.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||Mar 10, 2015|
|Previous Article:||Staffing Firm Murray Resources Launches Texas Expansion, Seeks Acquisition Targets.|
|Next Article:||Macy's Closes USD 210m Acquisition of Luxury Beauty Products Retailer Bluemercury.|