The completion of the agreement is expected to occur in mid-2013 subject to regulatory approval.
WAPC manufactures and markets the DaQiao and ChuShiLe brand bouillon products. These complement McCormick's current portfolio of flavour products in China that include spices, seasoning blends and sauces.
Annual sales of WAPC's business are approximately Rmb 730 million (approximately $115 million). McCormick has agreed to acquire the company for approximately Rmb 900 million (approximately $141 million).
Alan Wilson, chairman, president & CEO, McCormick, stated, "McCormick first entered China more than 20 years ago to provide a local source of supply to industrial customers. From this foundation, we launched the McCormick brand of flavour products for consumers. Today, McCormick is one of the leading brands of spices and seasonings, with particularly strong category share in the coastal regions. Across both our consumer and industrial business, we operate profitably in China and have grown sales at a 16% compound rate for the past five years.”
He added, "The addition of WAPC, extends our broad range of flavours in China with bouillon. In WAPC's top markets, more than half of consumers use chicken bouillon each day at every meal to enhance the flavour of their food. This business is strong in central China, which fits well with McCormick's presence in the coastal regions. The management and employees of WAPC have built a great business and are driving rapid growth. We look forward to working with them to achieve continued success."
