McCormick & Co. completes Stubb's acquisition
Aug. 21, 2015
by MEAT+POULTRY Staff
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McCormick & Co. plans to increase retail distribution of Stubb's barbecue products.
SPARKS, Md. – It’s a done deal. McCormick & Co. announced it completed its purchase of 100 percent of the shares of One World Foods Inc., seller of Stubb’s barbecue sauces. The cash transaction cost McCormick approximately $100 million. McCormick plans to maintain One World Foods headquarters in Austin, Texas.
McCormick said the company expects no earnings per share impact in 2015. However, the company expects incremental earnings before interest, tax, depreciation and amortization (EBIDTA) of at least $10 million by 2017.
After opening his first Stubb’s Legendary Bar-B-Q restaurant in 1968, C.B. Stubblefield began selling his sauces to retailers in 1992. The product line is known for its bold flavors. McCormick said the Stubb’s products round out McCormick’s range of grilling products such as Grill Mates, Lawry’s and McCormick brands. The company plans to increase household penetration of the Stubb’s brand and expand retail distribution in the United States and internationally.