Spice company McCormick (NYSE: MKC ) has completed its acquisition of Wuhan Asia-Pacific Condiments Company (WAPC), which is well-known in Central China for its bouillon products, particularly its DaQiao and ChuShiLe brands.
McCormick purchased the company's assets for $147 million, through both cash and taking on debt.
According to a McCormick press release today, WAPC's annual sales are approximately $122 million. The company's sales have grown at a compound annual rate of close to 25% over the past five years, and McCormick expects this upward trend to continue at a rate of at least 10%.
The acquisition complements McCormick's plans to broaden its global presence, and also expands its portfolio of products in China. McCormick arrived in China more than 20 years ago, first to supply industrial customers and then expanding to consumer products including spices, seasoning blends, and sauces, and its sales in the country have increased by more than 50% within the past five years.