McCormick & Co has acquired the Italian flavorings maker Enrico Giotti for $127m, as it looks to bolster its presence in Europe and tap into the rise in demand for natural flavorings. Giotti, headquartered in Florence, makes flavorings for the food and drinks industry as well as juices and herbal extracts. Founded in 1929, the company, which went public in 1953, has annual sales of around $56m.
The acquisition is the latest in a string of buys from McCormick, which has looked to grow by buying business both on its consumer and industrial side of the business in recent years.
The US spices and herb giant this year purchased the Australian maker of chilled herbs Gourmet Garden but failed in its bid to land the British food giant Premier Foods in a mammoth $2.2bn proposed deal.
Lawrence E. Kurzius, president and chief executive, McCormick, said: "The acquisition of Giotti is another important step in the execution of our growth strategy."
"McCormick is a leading flavor supplier to packaged food companies and multi-national restaurants, and this acquisition expands the breadth of our value-added flavor solutions in Europe with strong and innovative R&D capabilities. With this acquisition, we add greater scale to our already substantial industrial segment business in the Europe, Middle East and Africa region."
Malcolm Swift, president, Global Industrial and International Business added, "We anticipate strong growth driven by Giotti's expertise in the high-growth health and nutrition segment."
"The owners and employees of Giotti share with McCormick a great history and commitment to innovation and quality, and we look forward to working with them to achieve continued success."
Giotti’s history dates back to 1930 and is a family run business which is now in its third generation. Giotti has expanded from its Italian roots and its products are now exported to Europe, Africa and other markets.
It has two plants in Italy and one in Macedonia, along with offices in Europe with a total headcount of 130 staff.
Giotti now produces natural flavors and markets itself as a "natural flavor house" a key growth area across the flavors industry.
Its flavors include powder, emulsion, lip-soluble liquid flavors while its juices include powder and clear concentrated juices. It also makes powder and concentrated extracts.
McCormick said it hopes to complete the acquisition by the end of 2016.
McCormick, which boasts around $4.3bn in annual sales, has made a number of acquisitions in the recent years, as it looks to become more of a global player.
Its other recent purchases include broth maker Brand Aromatics, which it paid $63m for in 2015 and Italian spice maker Drogheria & Alimentari which its purchased last year.
