Notable Mergers and Acquisitions of the Day 06/28: (MKC) (SFE)/(SHPGY) (XEC)

• McCormick & Company, Inc. (NYSE: MKC), has entered an agreement for the acquisition of Kamis S.A.
  
  McCormick will pay about $291 million in the deal. The transaction multiple is expected to be 12 to 13 times EBITDA (earnings before interest, tax, depreciation and amortization).
  
  Transaction finalization is subject to regulatory approvals, including antimonopoly clearance in Poland, Russia and Ukraine. Upon closing, the Company will finance this purchase through cash and debt. The Company expects to record an estimated $5 million of costs related to this acquisition in 2011, which are expected to lower earnings per share by approximately $0.03 in fiscal year 2011. In fiscal year 2012, profit from Kamis is projected to add approximately $0.06 to McCormick’s earnings per share.
  
  Kamis S.A. is a brand leader in spices, seasonings, mustards and other flavor products in Poland.
  
  
• Safeguard Scientifics, Inc. (NYSE: SFE) announced that its aggregate cash proceeds from the completed sale of life sciences partner company Advanced BioHealing, Inc. (ABH) to Shire plc (Nasdaq: SHPGY) are $145.4 million.
  
  In addition, $7.3 million will be held in escrow pending the expiration of an escrow period expiring March 31, 2012. Safeguard’s total expected proceeds will represent a 13x cash-on-cash return.
  
  
• Cimarex Energy Co. (NYSE: XEC) has entered into an agreement for the $191 million divestiture of its 57.5% operated working interest in the Riley Ridge Federal Unit and gas plant located in southwestern Wyoming.
  
  The sale is expected to close in July and is subject to satisfactory completion of customary due diligence.

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