McCormick & Company, Inc. (MKC: Quote) said it agreed to purchase 100% of the assets of Wuhan Asia-Pacific Condiments Co., Ltd., or WAPC, a privately held company based in China. The purchase price is approximately RMB 900 million, or about $141 million, subject to certain closing adjustments.
The transaction multiple is expected to be 12 times EBITDA (earnings before interest, tax, depreciation and amortization). McCormick expects the acquisition to increase earnings per share in 2014 and be fully accretive in 2015, once integration activity is completed. In 2013, the Company anticipates a slightly dilutive impact to earnings per share due to integration and financing costs, and an estimated $4 million in costs related to the completion of this transaction.
The completion of the agreement is expected to occur in mid-2013.
Click here to receive FREE breaking news email alerts for McCormick & Co. and others in your portfolio
by RTT Staff Writer
For comments and feedback: email@example.com