SPARKS, MD. — McCormick & Co. has expanded the breadth of its industrial portfolio by acquiring Brand Aromatics, a privately held company based in Lakewood, N.J., for approximately $63 million in cash.
Brand Aromatics supplies natural savory flavors, marinades and broth and stock concentrates to the packaged food industry. The company’s annual sales in 2014 were $28 million, and they are expected to grow at a mid-single digit rate.
“Brand Aromatics is a great addition to McCormick's industrial business,” said Alan Wilson, chairman and chief executive officer of McCormick. “We are currently a leading supplier to packaged food companies and leading restaurants, and this acquisition extends the value-added flavor solutions we provide to stocks, marinades and other savory products. We look forward to working with the employees of Brand Aromatics to build sales and further strengthen our customer intimacy.”
Founded in 1997, Brand Aromatics has 40 employees. Headquarters, a research and development facility, a manufacturing facility and a distribution center are located in Lakewood.
The purchase price of $63 million is subject to certain closing adjustments. The transaction multiple is expected to be approximately 10 times EBITDA. McCormick expects no earnings per share impact in 2015 from the transaction.With $4.2 billion in annual sales, McCormick manufactures, markets and distributes spices, seasoning mixes, condiments and flavors to retail outlets, food manufacturers and food service businesses.