US-based herbs and flavourings manufacturer McCormick & Company has acquired all the shares of Botanical Food Company for $114m.
Based in Australia, Botanical Food produces and sells the Gourmet Garden brand of packaged herbs.
Gourmet Garden complements to McCormick's current branded herb portfolio.
McCormick intends to increase sales of the Gourmet Garden brand by expanding its worldwide distribution and increasing brand marketing.
McCormick & Company president and chief executive officer Lawrence Kurzius said: "As a global market leader in chilled convenient packaged herbs, Gourmet Garden exports its products to 15 countries with the largest market being the US.
"We anticipate strong growth for these products, particularly in the US and key international markets where consumers appreciate the value and accessibility of cooking with a more convenient flavouring alternative.
"The Gourmet Garden brand offers a more convenient alternative to consumers who currently buy fresh herbs. The owners and employees of Gourmet Garden have built a great business, and we look forward to working with them to achieve continued success."
The $114m acquisition price for Gourmet Garden is based on certain closing adjustments.
Based on the purchase price, the transaction multiple is expected to be nearly 12 times earnings before interest, tax, depreciation and amortisation (EBITDA).
The US company expects the buyout to be fully accretive next year.
Founded in 1999, Gourmet Garden employs nearly 200 people and owns a latest manufacturing plant in Queensland, Australia.
