McCormick & Co. has announced the full acquisition of the Italian spice company, Drogheria & Alimentari (D&A) for £62.5 million (US$96.8 million).
The purchase price will consists of a cash payment of £36.8 million (US$56.8 million), and a future payment in 2018 of up to £25.7 million (UA$39.7 million) based on the performance of the company.
McCormick currently has a strong presence in the spice and seasoning industry across Europe, the Middle East, and Africa, and this acquisition will expand upon that presence particularly in Europe, where D&A has a significant market share in Italy, controlling approximately 33% of the spice and seasoning market in that country.
D&A has a modern production facility in Florence, Italy, and together with McCormick, plans to grow sales of its portfolio of products in the mid-single digit range.
The deal is expected to close in May of 2015, subject to regulatory approval.
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