McCormick agrees to buy Enrico Giotti

Spice and seasoning manufacturer McCormick has agreed to acquire a 100% stake in Enrico Giotti (Giotti), a flavour manufacturer based in Florence, Italy.

McCormick intends to take over Giotti business for a cash payment of approximately €120m ($127m), subject to certain closing adjustments.

McCormick president and chief executive officer Lawrence Kurzius said: "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 multinational 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.”

Giotti products are used in beverage, sweet, savory and dairy flavour applications, with annual sales of approximately €53m ($56m).

With the Giotti acquisition, McCormick will expand its expertise in flavouring health and nutrition products.

Global Industrial and International Business president Malcolm Swift said: "We anticipate strong growth driven by Giotti's expertise in the high growth health and nutrition segment.

“The owners and employees of Giotti share with McCormick a great history and commitment to innovation and quality, and we look forward to working with them to achieve continued success.”

McCormick expects to complete the transaction by the end of this year.