McCormick & Company Incorporated announced that it has completed the purchase of C.M. van Sillevoldt B.V. for 58 million euros ($75.2 million) in cash. This company sells spices, herbs and seasonings under the Silvo brand in The Netherlands and the India brand in Belgium. The purchase price is a multiple of approximately nine times current year earnings before interest, tax, depreciation and amortization. McCormick will fund the purchase price with cash from operations and current credit facilities.
The Silvo business dates back to 1833. Today, the brand has a high recognition among consumers in The Netherlands. Net sales of the business have increased at a 5% compound annual growth rate since 1999 and reached 38 million euros ($49.3 million) in 2003.