- 01 May 2015

Drogheria e Alimentari - Fact Sheet

01 May 2015


Drogheria e Alimentari - Fact Sheet

Drogheria & Alimentari Fact Sheet May 2015

Business Description

  • Drogheria & Alimentari (D&A) established 1880
  • D&A is a leader in spices and seasonings in Italy and exports to 60 other countries
  • Modern production facility in Florence, Italy
  • Approximately 120 employees


Strategic Rationale for Acquisition

  • Complement McCormick strong brands across Europe and expand global leadership in spices and seasonings with a sizeable footprint in in Italy
  • Expand product breadth in Italy through innovation
  • Accelerate growth with premium brand in export markets


Agreement Overview and Financial Impact

  • Purchased 100% stock for €72M (approximately $81M US dollars), subject to certain closing adjustments
  • Purchase price consists of €50M cash payment and potential earn-out payment in 2018 of up to €35M, based upon performance of business; expect earn-out payment to have preliminary acquisition-date fair value of €22M
  • €50M initial payment funded with cash and debt
  • Based on initial cash payment, transaction multipleis approximately 9x EBITDA (earnings before interest, tax, depreciation and amortization)
  • Expect neutral 2015 EPS impact due to transaction, integration and financing costs, and fully accretive in 2016, excluding any net increase in fair value of potential earn-out payment


Net Sales

  • Annual sales approximately €50M (approximately $56M U.S. dollars)
  • Sales growing mid-single digit rate In Italy, D&A has approximately 1/3 of spice and seasoning category as supplier of both branded and private label products
  • Products sold in 60 other countries


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