McCormick & Co. today (31 May) announced the acquisition of Chinese spice group Wuhan Asia-Pacific Condiments (WAPC) for CNY900m (US$147m).
WAPC generates annual sales of approximately CNY750m and operates the well-known DaQiao and ChuShiLe bullion brands. McCormick said the products complement its existing business in China and emphasised that WAPC holds a leading position in central China. “With its strong presence in central China, WAPC also complements McCormick’s presence in the coastal regions,” the company said.
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WAPC has expanded at a compound annual growth rate of around 25% and McCormick suggested that it expects to continue growing the business at “at least” 10% going forward.
The deal was funded through a combination of cash on hand and debt and McCormick said it is expected to have a “slightly dilutive” effect on EPS in fiscal 2013. However, McCormick added that it would contribute to EPS in 2014 and be fully accretive by 2015.
