McCormick Completes Barbeque Sauces Acquisition
McCormick & Company, a global leader in flavour technology, has completed the $100 million purchase of One World Foods, which sells Stubb’s, 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.
The Stubb’s products round out McCormick’s range of grilling products currently marketed under the Grill Mates, Lawry’s and McCormick brands. McCormick intends to build the Stubb’s business through increased household penetration and expanded retail distribution in the US and internationally.
McCormick expects no earnings per share impact in 2015 from this acquisition. However, with plans to achieve strong growth and significant cost synergies McCormick expects incremental EBITDA of at least $10 million by 2017.
