US-based spices and seasonings manufacturer McCormick has acquired Wuhan Asia-Pacific Condiments (WAPC), a privately held firm based in China, for CNY900m ($147m).
WAPC produces DaQiao and ChuShiLe brand bouillon products, and has a strong presence in the central region of China. These products complement McCormick's existing range of flavor products in China that include spices, seasoning blends and sauces. The company has annual sales of approximately CNY750m ($122m).
McCormick stated that WAPC strengthens its presence in the coastal regions. The acquisition was funded through cash and debt.
In August 2012, McCormick entered into an agreement to acquire Wuhan Asia-Pacific Condiments (WAPC), as part of its plan to expand its presence in the country.
The company expects the acquisition to increase earnings per share (EPS) in 2014 and be fully accretive in 2015, on completion of integration activity.
In 2013, the company expects to achieve $4m of fees and other costs related to the completion of the transaction, as well as integration and financing costs. These costs are expected to more than offset operating income from the WAPC business and have a slightly dilutive impact EPS in 2013.
