SPARKS, MD. — McCormick & Co. has completed its purchase of One World Foods, Inc., the Austin, Texas-based seller of Stubb’s premium barbecue sauces, for a cash payment of approximately $100 million.
In addition to barbecue sauces, Stubb’s also offers marinades, rubs and skillet sauces. Annual sales are estimated to be $30 million in 2015 and are projected to grow at a double-digit pace annual over the next few years.
The addition of Stubb’s beefs up McCormick’s range of grilling products marketed under the Grill Mates, Lawry’s and McCormick brands. The company said it will maintain Stubb’s headquarters in Texas while building the business through increased household penetration and expanded retail distribution.McCormick said the transaction will have no impact on earnings per share impact in 2015. However, through strong growth and cost synergies, McCormick expects to add incremental EBITDA of at least $10 million by 2017.