US McCormick spices giant to buy Italy’s flavours leader Enrico Giotti

Second Italian acquisition for the US spices and flavors giant McCormick & Co., following the 2015 acquisition of Drogheria & Alimentari spa (see here a previous post by BeBeez).  McCormick announced yesterday an agreement for the acquisition of 100% of Enrico Giotti, the leading Tuscan based producer of natural flavors. Seller is the Giotti family, which together with the current management, will remain at the helm of the historical company established in 1928.

The company was valued at 120 million euro, or 12 times the ebitda expected for 2016, amounting to over 10 million euro. Sales are expected to reach approximately 55 million euro this year, generated mostly in Italy (60%) and the rest in Africa, Russia, Germany and the USA, supplying clients like Nestle, Pepsi and Ferrero. The company reached 49.9 million euros in revenues in 2015, with 8 million in ebitda and a net financial debt of just 8.8 million.

For McCormick, the transaction was originated and executed by the m&a boutique CP Advisors, in the persons of Salvo Mazzotta and Marco Garro. The law firm Shearman & Sterling has provided legal assistance. The financial advisor of Enrico Giotti was Kon, with Francesco Ferragina and Giovanni Nucera, whereas the legal assistance provided by the lawyer Philip Laroma Jezzi. download attachment