McCormick completes acquisition of Italian flavour company Giotti

Global flavour manufacturer McCormick & Company has completed the purchase of a 100% stake in Enrico Giotti (Giotti), an Italian flavour company.

Established in 1928, Giotti manufactures natural flavours, aromatic herbal extracts and concentrated juices.

The annual sales of the company are approximately €53m, which are expected to grow at a mid-to-high single digit rate for the next several years.

The acquisition of Giotti is expected to enhance McCormick's business in the Europe, Middle East and Africa region, while expanding the latter's value-added flavour solutions.

The purchase price for Giotti is €120m, which is subject to certain closing adjustments. The transaction multiple is nearly 12 times EBITDA.

After absorbing transaction, integration and financing costs by next year, the acquisition is expected to be fully accretive to EPS in 2018.

McCormick & Company manufactures markets and distributes spices, seasoning mixes, condiments and other products to the entire food industry.