SPARKS, MD. — McCormick & Co., Inc. has agreed to acquire Drogheria & Alimentari (D&A), a privately held spices and seasonings company based in Italy, for approximately €85 million ($97 million). The purchase price consists of a cash payment of approximately €50 million and a potential earn out payment in 2018 of up to €35 million based upon the performance of the business.

“We are pleased to expand our portfolio of leading brands around the world with the addition of Drogheria & Alimentari,” said Alan Wilson, chairman and chief executive officer of McCormick. “As a supplier of both brand and private label products, D&A 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 U.S. and key international markets where consumers are seeking unique and authentic ethnic flavors. The owners and employees of D&A have built a great business and we look forward to working with them to achieve continued success.”

Founded in 1880, D&A has approximately 120 employees and a manufacturing facility in Florence, Italy. D&A’s annual sales are approximately €50 million ($57 million), with 80% in Italy and 20% exported to 60 other countries.

Malcolm Swift, president of McCormick Europe, Middle East and Africa (EMEA), said the acquisition complements McCormick’s strong brands across EMEA and expands its current spice and seasoning leadership in Europe with a sizable footprint in Italy.

“In addition, there is a strong fit between McCormick, a recognized flavor leader in the region, and Drogheria & Alimentari, which has a reputation for high quality products and professionalism,” Mr. Swift said.

McCormick said it expects to work with the current owners of the business and to grow sales of D&A products at a mid-single digit rate.