McCormick buys Canadian honey company for $75M

McCormick buys Canadian honey company for $75M

McCormick buys Canadian honey company for $75M

 

McCormick & Co. Inc., the Sparks spice company, said Wednesday it has acquired the shares of Billy Bee Honey Products Ltd. for $75 million in cash.

Billy Bee Honey, considered Canada's largest honey business with $37 million in annual sales, sold the shares in an auction, said Joyce Brooks, McCormick's assistant treasurer.

Brooks said the acquisition gives McCormick a strong complement to the savory products it already sells in Canada. Toronto-based Billy Bee is known for its honey-based mustards, sauces and salad dressing. It also sells Doyon brand products popular in Quebec.

"This is a leading brand of honey in Canada," she said. "We're really looking to expand the strong brands the company has geographically."

McCormick officials, in announcing the deal, said they expect the purchase to help earnings and the company's goal of 8 percent to 10 percent earnings per share growth. The deal was announced after the market closed Wednesday, so Wall Street didn't have a chance to react.

Alan D. Wilson, McCormick's CEO, said in a statement that Billy Bee Honey fit into the company's acquisition strategy. In November, the company announced it was buying the Lawry brand of sauces, marinades and spices.

The $75 million spent buying Billy Bee Honey is about eight times McCormick's EBITDA (earnings before interest, tax, depreciation and amortization) and will be financed through cash from operations and short-term lines of credit