About This Deal

MCCORMICK & CO INC acquired Enrico Giotti SpA (Giotti) for $123.8 million (net of cash acquired of $1.2 million), a transaction completed in December 2016, structured as all cash.

Enrico Giotti SpA (Giotti) operates in Flavor Solutions - Flavors (Europe), is based in Italy. McCormick agreed to acquire all of the shares of Enrico Giotti SpA, a Florence-based Italian flavor manufacturer founded in 1928 that develops beverage, sweet, savory and dairy flavor applications along with natural flavors, aromatic herbal extracts and concentrated juices. Announced in late November 2016 and expected to close that December, the transaction was valued at roughly $127 million, or about 12 times EBITDA. McCormick viewed the addition as a way to strengthen its flavor-solutions capabilities and expand its presence in Europe.

Its acquisition expanded the breadth of value-added products for McCormick's flavor solutions segment, including additional expertise in flavoring health and nutrition products.

Leading European flavor manufacturer strengthening McCormick's Flavor Solutions footprint in Europe. McCormick Flavor Solutions segment (EMEA)

Deal Terms

Acquirer
MCCORMICK & CO INC
Target
Enrico Giotti SpA (Giotti)
Value
$123.8 million (net of cash acquired of $1.2 million)
Date
December 2016
Type
Full acquisition
Status
Ready

Transaction Details

Target HQ
Italy
Segment
Flavor Solutions - Flavors (Europe)
Structure
All cash
Announced
December 15, 2016
Closed
December 15, 2016

In Their Words

On December 15, 2016, we purchased 100% of the shares of Enrico Giotti SpA (Giotti), a leading European flavor manufacturer located in Italy, for a purchase price of $123.8 million (net of cash acquired of $1.2 million). The acquisition was funded with cash and short-term borrowings.McCormick FY2018 10-K, business acquisitions note

Advisors

Advisory firms were not disclosed for this transaction.

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Sources: Press release ↗

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