SPARKS, Md. (AP) — McCormick & Co. has completed its purchase of China's Wuhan Asia-Pacific Condiments Co. for about $147 million.
Privately held Wuhan manufactures and markets DaQiao and ChuShiLe brand bouillon products, which McCormick said Friday will complement its current lineup of spices, seasoning blends and sauces for the Chinese market. McCormick funded deal with a combination of cash and debt.
Wuhan's annual sales total about $122 million. Over the past five years, the company's sales have increased at a compound annual growth rate of about 25 percent and McCormick said it expects continued annual sales growth of at least 10 percent.
McCormick said it expects the acquisition to boost its earnings per share in 2014 and make their full contribution in 2015, after the company is fully integrated.
The Sparks, Md., company said it expects to record $4 million of fees and other costs related to the acquisition this year, which will slightly reduce its 2013 earnings.