Flavors producer McCormick has agreed to acquire 100% of Italy-based spice producer Drogheria & Alimentari (D&A) for around €85m (($97m).
The company has signed an agreement to this effect which is expected to be closed in May 2015.
McCormick chairman & CEO Alan Wilson said: "As a supplier of both brand and private label products, D&A has approximately one third of the spice and seasoning category in Italy and exports its products to 60 other countries.
"We anticipate strong growth for these premium products, particularly in the U.S. and key international markets where consumers are seeking unique and authentic ethnic flavors. The owners and employees of D&A have built a great business and we look forward to working with them to achieve continued success."
Drogheria & Alimentari generates around €50m in annual sales.
The acquisition is expected to increase McCormick's presence in Europe with a strong foothold in Italy.
McCormick Europe, Middle East and Africa president Malcolm Swift said: "This acquisition complements McCormick's strong brands across EMEA and expands McCormick's current spice and seasoning leadership in Europe with a sizable footprint in Italy.
"In addition, there is a strong fit between McCormick, a recognized flavor leader in the region, and Drogheria & Alimentari, which has a reputation for high quality products and professionalism."
McCormick plans to work with the current owners of Drogheria & Alimentari and to grow sales of latter's products at a mid-single digit rate.
Drogheria & Alimentari employs close to 120 people and operates a manufacturing facility in Florence, Italy where it produces spices and seasonings.
Around 80% of Drogheria's products are sold in Italy and the remaining 20% are exported to 60 other countries.
Image: McCormick spices. Photo: courtesy of Abhijit Tembhekar / Wikipedia.
