McCormick & Co., Inc. has agreed to acquire 100% of the shares of Enrico Giotti SpA, a Florence, Italy-based flavor manufacturer, for approximately $127 million in cash.
With $56 million in annual sales, Giotti produces natural flavors, aromatic herbal extracts and concentrated juices. Giotti is known in the industry for its beverage, sweet, savory and dairy flavor applications, McCormick said, and its acquisition will expand McCormick’s expertise in flavoring health and nutrition products.
“The acquisition of Giotti is another important step in the execution of our growth strategy,” said Lawrence E. Kurzius, president and chief executive officer of McCormick. “McCormick is a leading flavor supplier to packaged food companies and multi-national restaurants, and this acquisition expands the breadth of our value-added flavor 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.”
The Giotti acquisition falls in line with the growth strategy Mr. Kurzius outlined for McCormick during a June 3 presentation at the Sanford C Bernstein Strategic Decisions Conference in New York. He said McCormick is targeting businesses where “flavor and health intersect and extend our current footprint with healthy flavors and great brands, value-added higher-margin industrial businesses, some larger businesses in addition to bolt-on opportunities, and acquisitions that build scale where we currently have presence in developed and emerging markets.”
With the acquisition of Giotti, McCormick will have completed 13 acquisitions and joint ventures since 2007.