SPARKS, Md., Feb. 17 -- McCormick & Company, Incorporated (NYSE: MKC) today announced that it has signed a definitive agreement to acquire the remaining 49% share of Dessert Products International, S.A.S. (DPI) in exchange for its 50% interest in the Signature Brands, L.L.C. joint venture. The Company had acquired a 51% interest in the DPI business as part of the acquisition of the Ducros business in August 2000. As a result, McCormick will have 100% ownership of DPI, which markets the Vahine brand in France and other European countries.
This action is part of McCormick's plan to simplify its business and focus on those areas with strong growth potential. Vahine is the leading brand of dessert aids in France and other European countries. The Company entered the joint venture in 2000 as part of the acquisition of Ducros S.A.S., and since that time innovative new products and expanded distribution have increased sales and net income more than 50%.
The impact of this exchange on McCormick's ongoing sales and net income is expected to be neutral. The Company will record a gain and receive cash upon completion of the transaction, which is expected to occur in March 2006, subject to regulatory approvals.