McCormick - 15 December 2016

Enrico Giotti Fact Sheet

15 December 2016



Enrico Giotti Fact Sheet

Giotti Fact Sheet December 2016

Business Description

  • Giotti is a leading Italian flavor manufacturer located in Florence, Italy
  • Founded in 1928
  • Production facilities in Florence and Parma
  • Approximately 130 employees


Strategic Rationale for Acquisition


  • Enhance flavor capability in Europe,Middle East & Africa (EMEA)
  • Builds on strong R&D capabilities
  • Adds expertise in high-growth health & nutrition segment


  • Expands product range and customer base
  • Deepens existing customer relationships

  • Expands platform in Italy and increases existing scale
  • Margins accretive to the industrial segment
  • Accelerates sales growth for EMEA region

Business Description

  • Purchased 100% stock of Enrico Giotti SpA for 120 million Euro (127 million U.S.dollars), subject to certain closing adjustments
  • Financed with cash and short-term borrowings.
  • Transaction multiple is approximately 12x EBITDA (earnings before interest, tax,depreciation and amortization)
  • Fully accretive EPS impact in 2018; transaction, integration and financing costs in 2017

Net Sales

  • Annual sales approx. 53 million Euro (56 million USD).
  • Mid-to-high single digit sales growth expected for the next several years
  • Top 3 customers represent 20% of sales


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