McCormick acquires Australian herbs company

by Rebekah Schouten
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Gourmet Garden herbs, Botanical Foods Co., McCormick
Botanical Food Co. manufactures the Gourmet Garden brand of chilled convenient packaged herbs.

SPARKS, M.D. — McCormick & Co., Inc., has acquired Botanical Food Co., Pty Ltd., an Australian-based manufacturer of the Gourmet Garden brand of packaged herbs. McCormick purchased 100% of the privately held company’s shares for approximately $114 million in cash, subject to closing adjustments.

Gourmet Garden chilled convenient packaged herbs has annual sales of approximately $53 million, growing at a double-digit rate. To continue to drive double-digit sales growth, McCormick said it plans to expand distribution, increase brand marketing and achieve greater household penetration. McCormick said it anticipates no earnings-per-share impact in 2016 due to the estimated impact of transaction and integration costs, but the company expects the acquisition to be fully accretive in 2017.

Lawrence Kurzius, McCormick
Lawrence E. Kurzius, president and c.e.o. of McCormick
“We are pleased to expand our portfolio of leading brands around the world with the addition of Gourmet Garden,” said Lawrence E. Kurzius, president and chief executive officer of McCormick. “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.” 
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