McCormick acquires Brand Aromatics

FLAVOUR leader McCormick & Company, Incorporated (NYSE: MKC), has acquired 100% of the shares of Brand Aromatics, for $63 million in cash.

Since 1997, Brand Aromatics has been supplying the packaged food industry with savory flavors, marinades, and broth and stock concentrates. The privately held company has a workforce of 40 at its headquarters in New Jersey. In 2014, its annual sales came to $28 million.

“Brand Aromatics is a great addition to McCormick's industrial business,” said Alan Wilson, chairman & CEO of McCormick. “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." 

The transaction multiple is expected to be 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.