Flavors company McCormick has agreed to acquire One World Foods, Stubb's barbeque sauces supplier, for $100m.
Based in Austin, Texas, One World Foods produces and sells marinades, rubs and skillet sauces, in addition to Stubb's barbeque sauce.
One World Foods is expected to generate $30m in annual sales in 2015, with a potential double-digit growth rate for the next several years.
Following the acquisition, McCormick's range of grilling items sold under the Grill Mates, Lawry's and McCormick brands will be expanded with the addition of barbeque sauces.
As part of the acquisition, McCormick plans to boost sales of the Stubb's brand through expanded distribution, increased household penetration and innovative flavors.
McCormick chairman and CEO Alan Wilson said: "We are pleased to announce this agreement to acquire Stubb's. Based in Texas, Stubb's is an authentic, craft brand with an enthusiastic and loyal consumer base.
"Through marketing and innovation, we intend to build this base, increase household penetration and expand retail distribution in the U.S. and internationally."
Subject to regulatory approval, the acquisition is expected to be completed by July-end.
The deal is McCormick's third acquisition agreement announced in 2015.
McCormick's acquired Italian spice producer Drogheria & Alimentari for $97m and flavours producer Brand Aromatics for around $63m this year.
