SPARKS, Md. (AP) — Spice maker McCormick & Co. Inc. said Wednesday it agreed to buy marinade and seasoning maker Lawry's from consumer products maker Unilever for $605 million in cash.
McCormick said it will finance the purchase through cash from operations, committed bank lines and commercial paper borrowings.
McCormick said the Lawry's business includes a line of seasoning blend products sold at grocery stores under the Lawry's and Adolph's brands, which account for about 65 percent of sales, and a line of wet marinades that account for about 23 percent of the company's sales.
Sales to food service customers represent another 12 percent of Lawry's sales, the company said.
Unilever said the business generated about $150 million in combined revenue in 2006.
The acquisition does not include any manufacturing facilities or employees.
The deal is subject to regulatory approval. McCormick said it will pay Unilever a $30 million termination fee if it approval isn't granted for the deal.
