BeBeez - Feb 20 2015

US spices giant McCormick buys Italy’s market leader Drogheria e Alimentari

Feb 20 2015



US spices giant McCormick buys Italy’s market leader Drogheria e Alimentari

US Spices specialist giant McCormick will buy Italy’s sector leader Drogheria e Alimentari spa from Italian mid market private equity firms SICI sgr (24%) and Hat Holding (16%) and from Italy’s wealth family Carapelli-Barbagli, the former owner of Carapelli oilve oil brand. The deal was quite a surprise for the market as the two private equity funds had acquired their 40% stake in the company capital just last September from Alto Partners Capital, another Italian mid-market private equity firm (see here a previous post by BeBeez). More in detail, before the deal, the brand Nuova Terra (cereals and soups) will be spun off and bought by the Carapelli-Barbagli family as well as and Drogheria e Alimentari’s subsidiary Le Bontà (owner of I Toscanacci sauces brand) while McCormick will buy the rest of Drogheria e Alimentari’s business, included the Maribù brand (cake decorations). The family will sell their stake completely but will go on managing the company for at least a three years’ time as they have gained a very strict and trustable relationship with McCormick’s top management in the last ten years. The original company was founded in Florence in 1880, it has always operated in the spice and grocery sector, importing directly from the countries of origin. In 1987 the Carapelli-Barbagli family took control of the business and since then they took over other Italian brands in the food sector Drogheria e Alimentari reached over than 60 million euros in consolidated revenues in 2014 (from 55 million in 2013) of which 20% coming from export sales in more than 60 countries and an Ebitda of more than 8 million (from 6.6 millions). As for the new perimeter of the company which is going to be sold to McCormick, revenues in 2014 were over 50 million euros with a 12% ebitda. The company has been valued about 85 million euros that is more than 9x 2014 ebitda, of which a maximum of 35 millions earn out will be paid in 2018 on the basis of 2017′s company statements. The deal is expected to close by next May and is subject to Antitrust authorization.
Financial advisor to Drogheria e Alimentari was KON, with headquarters download attachment