McCormick acquires Brand Aromatics for $63m

Flavour manufacturer McCormick and Company has acquired 100% of the privately held Brand Aromatics for approximately $63m.

The acquisition comes weeks after McCormick announced a deal to acquire Italian spice maker Drogheria and Alimentari for $97m.

Located in New Jersey, Brand Aromatics supplies natural savoury flavours, marinades, and broth and stock concentrates to the packaged food industry. It recorded annual sales of around $28m in 2014 and is expecting a mid-single digit rate growth.

Brand Aromatics currently employs 40 people.

McCormick chairman and CEO Alan Wilson said: "Brand Aromatics is a great addition to McCormick’s industrial business.

"We are currently a leading supplier to packaged food companies and leading restaurants, and this acquisition extends the value-added flavour solutions we provide to stocks, marinades and other savoury products. We look forward to working with the employees of Brand Aromatics, to build sales and further strengthen our customer intimacy."

McCormick is expecting no earnings per share impact in 2015, owing to the estimated impact of transaction, integration and financing costs.

McCormick specialises in producing, marketing and distributing spices, seasoning mixes, condiments and other flavourful products to the food industry, retail outlets, food manufacturers and foodservice businesses.

It now sells its grilling, baking and cooking flavourings in more than 100 countries, operates plants in 25 nations and has captured 21%of the global market for packaged spices and herbs, reported The Baltimore Sun.