McCormick & Company acquires 100% of Wuhan Asia-Pacific Condiments
McCormick enters agreement to acquire Wuhan Asia-Pacific Condiments for $141m.
McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, first entered China more than 20 years ago to provide a local source of supply to industrial customers. From this foundation, they launched the McCormick brand of flavor 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 their consumer and industrial business, they operate profitably in China and have grown sales at a 16% compound rate for the past five years.
Wuhan Asia-Pacific Condiments Co., Ltd. (WAPC), is a privately held company founded in 1998. They have approximately 900 employees, a modern manufacturing facility located in Wuhan, China and a network of distributors that serves traditional markets as well as modern grocery stores. Sales of the business have grown at a 25% compound annual rate from 2007 to 2011 as a result of increasing demand, rapid distribution expansion and brand marketing. It manufactures and markets the well-known DaQiao and ChuShiLe brand bouillon products, which have a leading position in the central region of China.
WAPC’s products complement McCormick's current portfolio of flavor products in China that include spices, seasoning blends and sauces. The addition of WAPC, extends their broad range of flavors 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 flavor of their food. This business is strong in central China, which fits well with McCormick's presence in the coastal regions. Annual sales of WAPC's business are approximately RMB 730 million (approximately $115 million in U.S. dollars).
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Clearwater Advisers
Adviser to McCormick & Company on its acquisition of Wuhan Asia-Pacific Condiments
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