WASHINGTON (dpa-AFX) - McCormick & Company, Incorporated (MKC), a global leader in flavor, announced an agreement to acquire 100% of the shares of One World Foods Inc., seller of Stubb's barbeque sauces, a privately held company located in Austin, Texas. The purchase price for Stubb's is approximately $100 million.
Stubb's is the leading premium barbeque sauce brand in the U.S. In addition to sauces, Stubb's products include marinades, rubs and skillet sauces. Annual sales of the business are projected to be $30 million in 2015 and are expected to grow at a double-digit rate annually for the next several years.
Due to the estimated impact of transaction, integration and financing costs, McCormick expects no earnings per share impact in 2015 from the acquisition. McCormick expects incremental EBITDA (earnings before interest, tax, depreciation and amortization) of at least $10 million by 2017.
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