McCormick to Acquire Kamis

McCormick & Company, Inc. signed an agreement to purchase 100 percent of the shares of Kamis S.A. for approximately $291 million dollars. The completion of the agreement is expected to occur by September 2011 subject to regulatory approval.
 

Alan Wilson, Chairman, president and chief executive officer of McCormick, states, “This acquisition is an excellent opportunity for McCormick to expand its portfolio of leading brands in Europe. Kamis is a brand leader in Poland where seasonings, mustard and other flavor products are in high demand. More than a third of consumers in Poland purchase seasonings at least every two weeks. Across its entire portfolio, Kamis is growing sales at a mid-single digit rate. The management and employees of Kamis have built a strong business and we look forward to working with them to develop and launch new products in other categories, accelerate penetration of other Central and Eastern European markets and expand in the food service channel.”
 

Malcolm Swift, president McCormick Europe, Middle East and Africa added, “This acquisition complements McCormick’s strong brands in the U.K., France and other parts of Western Europe, as well as its recently announced joint venture in Turkey. The agreement to acquire Kamis is in line with McCormick’s growth strategy in Europe, Middle East and Africa. In addition, there is a strong fit between McCormick, a recognized flavor leader in the region, and Kamis which has a solid reputation for high quality products and professionalism in Central and Eastern Europe.”
 

Kamis is a leading consumer brand in Poland with approximately a 45 percent share of the spice and seasoning category and 30 percent share of the mustard category. Founded in 1991, the business has expanded beyond Poland with distribution subsidiaries in Russia, Romania and Ukraine, and exports into a number of other Central and Eastern Europe countries. In addition, Kamis has expanded its business beyond spices, seasonings and mustards into a number of other flavor products including vinegars, sauces and marinades. By marketing under several brands and as a supplier of private label, Kamis offers consumers everything from premium items to value-priced products. Customers include traditional grocery, supermarkets, hypermarkets and discount retailers, with a smaller portion of sales to restaurants, other food service operators and packaged food manufacturers. Across its entire portfolio of products and customers, sales are growing at a mid-single digit rate. The business has approximately 1,250 employees and a manufacturing facility located near Warsaw.
 

Wilson further stated, “An important part of McCormick’s growth strategy is to expand our presence in emerging markets where consumers have an increasing demand for branded packaged foods and an increased interest in new flavors. We have had excellent progress with this growth strategy and today have a strong presence in China, Mexico, South Africa and Turkey, as well as a foothold in several smaller markets. Our portion of sales from emerging markets has grown from 6 percent in 2006 to 9 percent in 2010. With the addition of Kohinoor in India and Kamis in Poland we expect our percentage of sales from emerging markets to exceed 12 percent in 2012.”