Sector News

McCormick Announces Acquisition of Brand Aromatics

March 10, 2015
Food & Drink
/PRNewswire/ – McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today announced that it has acquired 100% of the shares of Brand Aromatics, a privately held company located in New Jersey. 
 
  • Brand Aromatics is a supplier of natural savory flavors, marinades, and broth and stock concentrates to the packaged food industry. Annual sales were $28 million in 2014 and are expected to grow at a mid-single digit rate.
  • McCormick has acquired the business for approximately $63 million in cash. 
  • The addition of Brand Aromatics expands the breadth of value-added products in McCormick’s industrial business

Alan Wilson, Chairman & CEO of McCormick stated, “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 flavor solutions we provide to stocks, marinades and other savory products. We look forward to working with the employees of Brand Aromatics to build sales and further strengthen our customer intimacy.” 

Founded in 1997, Brand Aromatics has 40 employees and supplies a wide range of savory products to the packaged food industry. The company’s headquarters, R&D facility, USDA manufacturing facility and distribution center are located in Lakewood, New Jersey. The purchase price for Brand Aromatics is approximately $63 million subject to certain closing adjustments.  The transaction multiple is expected to be approximately 10 times EBITDA (earnings before interest, tax, depreciation and amortization). Due to the estimated impact of transaction, integration and financing costs, McCormick expects no earnings per share impact in 2015. 
 
Source: McCormick

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

November 22, 2020

AI-driven vertical farming project secures $1m in funding

Food & Drink

Swegreen has secured funding from Vinnova for a project aimed at further developing its platform for artificial intelligence (AI)-driven vertical farming.

November 22, 2020

Mondelēz ditches plastic trays for carboard in adult selection boxes

Food & Drink

Mondelēz International has announced that it has removed 1.1 million plastic trays across its entire adult selection boxes range in UK and Ireland this Christmas.

November 22, 2020

WHO launches first-ever certification program for trans fat elimination

Food & Drink

The World Health Organization (WHO) is piloting industry’s first certification program to recognize countries that have eliminated industrially produced trans-fatty acids from their food supplies.

Send this to a friend