US spice company McCormick & Co has announced that it has completed the purchase of European spice company C.M. van Sillevoldt B.V. for €58m (US$73.7m) in cash.
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The company sells spices, herbs, and seasonings under the Silvo brand in The Netherlands and the India brand in Belgium. McCormick said it would fund the purchase with cash from operations and current credit facilities.
The Silvo business, which dates back to 1833, had net sales of €38m in 2003. The business is achieving growth through innovative products and packaging with a focus on convenience, quality, and ethnic flavours, McCormick said.
For McCormick’s 2005 fiscal year the acquisition is expected to add US$0.01 to earnings per share and approximately $50m to net sales. In 2006, earnings per share are expected to benefit an additional $0.01-$0.02.
“A primary avenue of growth for McCormick is the acquisition of leading brands in key markets. Since the acquisition of Ducros in 2000, we have directed our efforts to expansion in Europe. The Silvo acquisition fits squarely within this strategy, extending our presence into The Netherlands with a strong leading brand,” said Robert Lawless, chairman, president and CEO of McCormick.
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