McCormick completes the acquisition of Enrico Giotti SpA

SPARKS, Md., Dec. 15, 2016 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today announced that it has completed the purchase of 100% of the shares of Enrico Giotti SpA (Giotti), a leading Italian flavor manufacturer located in Florence, Italy.  McCormick announced the agreement to acquire Giotti on November 29, 2016.

• Giotti is well known in the industry for its innovative beverage, sweet, savory and dairy flavor applications. Annual sales are approximately 53 million Euro (56 million U.S. dollars) and are expected to grow at a mid-to-high single digit rate for the next several years.
• Financed with cash and short-term borrowings, McCormick expects to record an acquisition price of 120 million Euros (127 million U.S. dollars), subject to certain closing adjustments.
• Expands value-added product offering for the industrial segment including additional expertise in flavoring health and nutrition products.

Founded in 1928, Giotti is a leading manufacturer of natural flavors, aromatic herbal extracts, and concentrated juices headquartered in Florence, Italy.  The acquisition of Giotti adds greater scale to McCormick's already substantial industrial business in the Europe, Middle East and Africa region while expanding the breadth of McCormick's value-added flavor solutions.

The purchase price for Giotti is 120 million Euro (127 million U.S. dollars) subject to certain closing adjustments.The transaction multiple is approximately 12 times EBITDA (earnings before interest, tax, depreciation and amortization).  After absorbing transaction, integration and financing costs in 2017, the acquisition is expected to be fully accretive to EPS in 2018. 

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