McCormick Acquires Silvo, the Market Leader in Dutch Spice & Herb Market

SPARKS, Md., Nov. 2 /PRNewswire-FirstCall/ -- McCormick & Company, Incorporated (NYSE: MKC) today announced that it has completed the purchase of C.M. van Sillevoldt B.V. for euro 58 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 strong heritage and 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 euro 38 million in 2003. The business is achieving growth through innovative products and packaging with a focus on convenience, quality, and ethnic flavors. In 2003, Silvo transformed its direct to store distribution system that is leading to improvements in product merchandising, customer service, sales information and distribution logistics.

For McCormick's 2005 fiscal year, in U.S. dollars, the acquisition is expected to have a positive impact on gross profit margin, operating income margin and cash flow, and to add $0.01 to earnings per share and approximately $50 million to net sales. In 2006, earnings per share are expected to benefit an additional $0.01-$0.02.

Robert J. Lawless, Chairman, President & CEO of McCormick, stated, "A primary avenue of growth for McCormick is the acquisition of leading brands in key markets. Since the acquisition of Ducros in 2000, we have directed our efforts to expansion in Europe. The Silvo acquisition fits squarely within this strategy, extending our presence into The Netherlands with a strong leading brand. We welcome the Silvo employees to our team and are pleased to add the Silvo products to our lineup of great brands around the world."

Acquisition Information

A Silvo fact sheet that summarizes current information related to the acquisition can be found on McCormick's website at http://www.mccormick.com under "Investors."

Forward-looking Statement

Certain information contained in this release, including expected synergies and projections, are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could be materially affected by external factors such as: actions of competitors, customer relationships, fluctuations in the cost and availability of supply chain resources and foreign economic conditions, including currency rate fluctuations. The Company undertakes no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise.

About McCormick

McCormick & Company, Incorporated is the global leader in the manufacture, marketing and distribution of spices, seasonings and flavors to the entire food industry - to foodservice and food processing businesses as well as to retail outlets.

SOURCE McCormick & Company, Incorporated

CONTACT:
Corporate Communications
Mac Barrett
+1-410-771-7310
mac_barrett@mccormick.com
or
Investor Relations
Joyce Brooks
+1-410-771-7244
joyce_brooks@mccormick.com
both of McCormick
Web site: http://www.mccormick.com /
(MKC)