Baker & McKenzie’s M&A team recently advised McCormick & Company, Incorporated (“McCormick”), a global leader in flavor, on its agreement to purchase 100% of the assets of Wuhan Asia-Pacific Condiments Co., Ltd. (“WAPC”), a privately held company based in China, for approximately RMB900 million (US$147 million).
The Baker & McKenzie team was led by Shanghai-based Corporate partner, Howard Wu, and special counsel Cherri Shi. The team acted as lead counsel on the transaction with primary responsibility for negotiating the transaction agreements, legal/regulatory structuring and general transaction management.
Commenting on the acquisition, Howard Wu said, “We are delighted to have acted for McCormick, a long-standing client of the Firm, on this strategic acquisition. The new products complement McCormick’s current portfolio of flavour products in China, including spices, seasoning blends and sauses, extend its broad range of flavors in China with bouillon and provides continued growth opportunities to expand its business in central China as well as the coastal regions.”
WAPC was founded in 1998 and manufactures and markets the well-known DaQiao and ChuShiLe brand bouillon products, which have a leading position in the central region of China. Annual sales of WAPC’s business are approximately RMB750 million (approximately US$122 million). WAPC has 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.
McCormick, a global leader in flavor, has more than US$3.5 billion in annual sales. It manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry – retail outlets, food manufacturers and foodservice businesses. McCormick first entered China more than 20 years ago to provide a local source of supply to industrial customers. Today, McCormick is one of the leading brands of spices and seasonings, with particularly strong category share in the coastal regions. Across both its consumer and industrial businesses, McCormick operates profitably in China and has grown sales more than 50% in the past five years.
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