McCormick

McCormick & Company, Incorporated, a global leader in flavor, announced that it has acquired 100% of the shares of Brand Aromatics, a privately held company located in New Jersey. 

Brand Aromatics is a supplier of natural savory flavors, marinades, and broth and stock concentrates to the packaged food industry. Annual sales were $28 million in 2014 and are expected to grow at a mid-single digit rate.

McCormick has acquired the business for approximately $63 million in cash. 

The addition of Brand Aromatics expands the breadth of value-added products in McCormick's industrial business.

Alan Wilson, Chairman & CEO of McCormick stated, "Brand Aromatics is a great addition to McCormick's industrial business. We are currently a leading supplier to packaged food companies and leading restaurants, and this acquisition extends the value-added flavor solutions we provide to stocks, marinades and other savory products. We look forward to working with the employees of Brand Aromatics to build sales and further strengthen our customer intimacy." 

Founded in 1997, Brand Aromatics has 40 employees and supplies a wide range of savory products to the packaged food industry. The company's headquarters, R&D facility, USDA manufacturing facility and distribution center are located in Lakewood, New Jersey. The purchase price for Brand Aromatics is approximately $63 million subject to certain closing adjustments.  The transaction multiple is expected to be approximately 10 times EBITDA (earnings before interest, tax, depreciation and amortization). Due to the estimated impact of transaction, integration and financing costs, McCormick expects no earnings per share impact in 2015.