McCarthy, 23, was one of the most sought pitchers this off-season. In 2006, he was 4-7 with a 4.68 ERA.
"In our minds, this is one of the elite, young, now-ready, battle-tested pitchers in the game," said General Manager Jon Daniels on the Rangers' Web site. "As we go along, we've kept a list of the top young pitchers in the game and Brandon has always been at the top of the list."
In his career, McCarthy is 7-9 with 33 walks and 117 walks in 151 2/3 innings.
Texas also acquired 18-year-old outfielder David Paisano, who batted .338 for Chicago's Venezuelan Summer League team last season.
Putin thinks Obama would save him if he were drowning
Chipotle plans first price increase in 3 years