FDBusiness.com

McCormick & Company, the global flavour specialist, has signed an agreement to acquire 100% of the shares of One World Foods, seller of Stubb’s barbeque sauces, a US-based private company for $100 million in cash. Stubb’s is the leading premium barbeque sauce brand in the US. In addition to sauces, Stubb’s products include marinades, rubs and skillet sauces. Annual sales of the business are projected to be $30 million in 2015 and are expected to grow at a double-digit rate annually for the next several years.

Stubb’s products complement McCormick’s range of grilling items with the addition of authentic, craft barbeque sauces. McCormick plans to drive sales of the Stubb’s brand through expanded distribution, increased household penetration and innovative flavours.

Acquisitions are an important avenue of growth for McCormick. Stubb’s is McCormick’s third acquisition agreement announced in 2015.

Alan Wilson, Chairman and CEO of McCormick, states: “Based in Texas, Stubb’s is an authentic, craft brand with an enthusiastic and loyal consumer base. Through marketing and innovation, we intend to build this base, increase household penetration and expand retail distribution in the US and internationally. The Stubb’s products round out the range of grilling products currently marketed by McCormick under the Grill Mates, Lawry’s and McCormick brands.”