McCormick Buys Silvo

NEW YORK - Nov 2/04 - SNS -- McCormick & Company, Incorporated 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. Net sales of the business have increased at a 5% compound annual growth rate since 1999 and reached Euro 38 million in 2003.

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.