US spices and condiments maker McCormick’s has announced a deal – expected to close in May – to buy Italian spices and seasonings manufacturer Drogheria & Alimentari for US $ 97 m.
On the other hand, Italian manufacturer Drogheria & Alimentari enters in the network of the leading global companies in the spices’ sector. This is not about ‘a surrender to the foreigner’, actually it is an important move forward the international process of the Florence based group, in order to fuel penetration of made in Italy products in most of the targeting global markets.
“The acquisition – states Andrea Barbagli, managing director at Drogheria & Alimentari – represents the perfect opportunity for enhance company’s growth which will provide benefits all over the surrounding environment. The employment is forecast to rise up 50 per cent.” Drogheria & Alimentari is getting for doubling the business in San Pietro (Sieve). The production plant will completed in 2016 with positive relapses on the enviroment and employment.
Speaking about the kind of collaboration between the two, Barbagli stresses that “ Drogheria & Alimentari will continue to work with Italian know-how exclusively, getting from McCormick’s that know-how which will allow to improve the yet well known high level of traceability, food safety standards and quality assurance, in order to gain benefits for clients and customers. The agreement will drive investments more on Drogheria & Alimentari brand, helping to expand penetration in domestic market and abroad”.
McCormick’s, which its positioning is a brand leadership worldwide, aims therefore to develop business in Italy providing Drogheria & Alimentari the necessary international framework, maintaining production plant and managing director board in Italy.
Ceo Alain Wilson said: “As a supplier of both brand and private label products, Drogheria & Alimentari has approximately one third of the spice and seasoning category in Italy and exports its products to 60 other countries. We anticipate strong growth for these premium products, particularly in the US and key international markets where consumers are seeking unique and authentic ethnic flavors”.
Malcolm Swift, president of McCormick’s operations in Europe, Middle East and Africa (EMEA), adds the deal “expands McCormick’s current spice and seasoning leadership in Europe with a sizable footprint in Italy”. The acquisition would complement the company’s existing brands across the division. The deal comes as McCormick has been growing its international sales. McCormick’s net income in 2014 rose 12.6 percent to $437.9 million thanks in part to to strong sales in Europe, the Middle East, Africa and especially China.