By Andrea K. Walker, The Baltimore Sun
5:02 PM EDT, June 28, 2011
Spice company McCormick & Co. Inc. said Tuesday it had entered into an agreement to buy a Polish food company, continuing the Sparks company's expansion overseas.
McCormick plans to purchase all the shares of privately held Kamis SA in a $291 million deal. Kamis makes spices, seasonings, flavorings and mustards, with distribution in Russia and other parts of Central and Eastern Europe.
Kamis had sales of about $105 million last year.
The deal, which is subject to regulatory approval, is expected to be completed in September.
Kamis sells to supermarkets, hypermarkets and discount retailers. A smaller portion of its sales are to restaurants, food service operators and packaged food manufacturers. It employs about 1,250 people and operates a manufacturing facility near Warsaw.
McCormick will finance the purchase through cash and debt and expects to report about $5 million in costs related to the acquisition this year. The costs are expected to lower earnings per share by about 3 cents in fiscal year 2011.
But profit from Kamis is expected to add 6 cents to earnings per share in fiscal year 2012.
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