McCormick & Co. (NYSE: MKC) is buying Enrico Giotti S.p.A., an Italian manufacturer of flavors and extracts, for nearly $127 million in cash. Expected to close by year end, the acquisition will expand McCormick’s products and research and development capabilities in Europe.
Giotti, founded in 1928, makes “natural” flavors, herbal extracts and concentrated juices from its headquarters in Florence, Italy. The target produces a variety of flavors and semi-finished products for the food, pharmaceutical and nutraceutical industries. The deal is expected to grow McCormick’s industrial segment with additional expertise in flavoring health and nutritional products. Giotti reports $56 million in annual sales.