McCormick to acquire Polish spice company
June 28, 2011
SPARKS, MD. — McCormick & Co., Inc. has entered an agreement to purchase all shares of Kamis S.A., a Polish-based company that produces spices, seasonings and mustards with distribution in Russia and other parts of Europe. The acquisition is valued at approximately $291 million and is expected to close by September.
“This acquisition is an excellent opportunity for McCormick to expand its portfolio of leading brands in Europe,” said Alan Wilson, chairman, president and chief executive officer. “Kamis is a brand leader in Poland where seasonings, mustard and other flavor products are in high demand.
“More than a third of consumers in Poland purchase seasonings at least every two weeks. Across its entire portfolio, Kamis is growing sales at a mid-single digit rate. The management and employees of Kamis have built a strong business, and we look forward to working with them to develop and launch new products in other categories, accelerate penetration of other Central and Eastern European markets and expand in the food service channel.”
Kamis has about 45% share of the spices and seasonings category and about 30% of the mustard category in Poland. Annual sales are about $105 million.
“This acquisition complements McCormick’s strong brands in the U.K., France and other parts of Western Europe, as well as its recently announced joint venture in Turkey,” said Malcolm Swift, president of McCormick’s business in Europe, the Middle East and Africa. “The agreement to acquire Kamis is in line with McCormick’s growth strategy in Europe, Middle East and Africa. In addition, there is a strong fit between McCormick, a recognized flavor leader in the region, and Kamis which has a solid reputation for high-quality products and professionalism in Central and Eastern Europe.”
In early June, McCormick entered into a joint venture in India with Kohinoor Foods Ltd. to market and sell basmati rice and food products. McCormick said it will invest $115 million for the transaction, and the company will have an 85% interest in the new joint venture.