Under the terms of the agreement, McCormick gains 100% of the shares of D&A, which boasts annual sales of €50M (£36.8M), 80% of which comes from Italy and 20% from exports.
The purchase price consists of a cash payment of €50M and a further payment in 2018 of up to €35M (£25.7M), based on the performance of the business.
The acquisition is expected to be completed in May this year, subject to regulatory approval.
“This acquisition complements McCormick’s strong brands across EMEA [Europe, Middle East and Africa] and expands McCormick’s current spice and seasoning leadership in Europe with a sizable footprint in Italy,” said Malcolm Swift, president of McCormick EMEA, in a statement issued on February 20.
“In addition, there is a strong fit between McCormick, a recognised flavour leader in the region, and D&A, which has a reputation for high quality products and professionalism.”
Alan Wilson, chairman and ceo of McCormick, said: “We are pleased to expand our portfolio of leading brands around the world with the addition of D&A. As a supplier of both brand and [own-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 US and key international markets where consumers are seeking unique and authentic ethnic flavours. The owners and employees of D&A have built a great business and we look forward to working with them to achieve continued success.”
Founded in 1880, D&A has 120 employees and a modern manufacturing facility located in Florence, Italy. It said it expected to work with the current owners of the business and to grow sales of D&A products at a mid-single digit rate.
Spices, seasonings and condiments company McCormick claims annual sales of $4.2bn (£2.7bn). Its brands include Schwartz flavour mixes and Hammonds sauces.