McCormick to Acquire Italian Flavour Manufacturer
McCormick & Company, the US-based global spices, seasoning mixes and condiments specialist, has agreed to acquire Enrico Giotti, located in Florence, Italy, for €120 million ($127 million). Founded in 1928, Giotti is a leading manufacturer of natural flavours, aromatic herbal extracts, and concentrated juices. Giotti is well known in the industry for its innovative beverage, sweet, savoury and dairy flavour applications. Annual sales are approximately €53 million.
The acquisition of Giotti expands the breadth of value-added products for McCormick’s industrial segment including additional expertise in flavouring health and nutrition products.
Lawrence E Kurzius, president and chief executive of McCormick, comments: “The acquisition of Giotti is another important step in the execution of our growth strategy. McCormick is a leading flavour supplier to packaged food companies and multi-national restaurants, and this acquisition expands the breadth of our value-added flavour solutions in Europe with strong and innovative R&D capabilities. With this acquisition, we add greater scale to our already substantial industrial segment business in the Europe, Middle East and Africa region.”
The purchase price for Giotti is approximately 12 times EBITDA (earnings before interest, tax, depreciation and amortization). McCormick expects to complete the transaction in December 2016.
