McCormick & Co. added more barbecue to its flavor lineup on Wednesday, announcing the acquisition of the Texas maker of Stubb's sauces for $100 million.
The Sparks-based spice company said it acquired all of the shares of One World Foods Inc., which sells Stubb's brand barbecue sauces, marinades, rubs and skillet sauces. McCormick said the sauces would complement its line of Grill Mates and Lawry's grilling spices and that it planned to spread the reach of the Stubb's brand through expanded distribution and new flavors.
McCormick said it projects Stubb's sales to be $30 million in 2015 and expects them to grow at a double-digit rate each year for the next several years. Pending regulatory approval, the acquisition is expected to be complete by the end of July.
The spice maker's shares closed Wednesday up $1.16, at $81.42 each.
"Stubb's is an authentic, craft brand with an enthusiastic and loyal consumer base," said Alan Wilson, McCormick's chairman and CEO, in a statement. "Through marketing and innovation, we intend to build this base, increase household penetration and expand retail distribution in the U.S. and internationally. ... We look forward to working with the Stubb's employees to drive increased sales and profit for this business."
Stubb's was founded by C.B. Stubblefield, who opened his first Stubb's Legendary Bar-B-Q restaurant in 1968 and started selling his sauces to grocery stores in 1992.
McCormick, the nation's largest spice maker, announced two other acquisitions this year. It expanded its foothold in Europe with the February acquisition of Italian spice-maker Drogheria & Alimentari for $97 million. It also bolstered its business selling to restaurants and food manufacturers by buying Brand Aromatics, a privately held New Jersey-based maker of marinades and broths, for about $63 million in cash in March.