Spice manufacturer McCormick & Company has acquired Australia-based packaged herbs manufacturer Botanical Food Company in an all-cash deal worth $114m.
The acquisition will expand McCormick's existing branded herb portfolio with the addition of chilled convenient herbs.
McCormick plans to continue the double-digit growth recorded by Botanical's Gourmet Garden brand of packaged herbs by expanding distribution network and increasing brand awareness and rising customer penetration rate.
Mccormick & Company president and CEO Lawrence E. 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 United States.
"We anticipate strong growth for these products, particularly in the U.S. and key international markets where consumers appreciate the value and accessibility of cooking with a more convenient flavoring 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 deal is subject to certain closing adjustments and McCormick expects the transaction to be fully accretive by 2017. The company sees no impact on its earnings per share in 2016 from the transaction.
Gourmet Garden was founded in Australia in 1999. Retail customers in North America and Australia account for over 90% of Gourmet Garden sales. It earns $53m in annual sales. It employs 200 people and owns a manufacturing facility in Queensland.
