McCormick Expands in India with Kohinoor
SPARKS, Md. (
) --
McCormick
(MKC) - Get Report
is expanding its emerging-market footprint through a joint venture with India-based
Kohinoor Foods
.
Through the joint venture, called Kohinoor Speciality Foods India, McCormick will market and sell Koninoor's basmati rice and other food products in India.
Kohinoor is a leading national food brand in the subcontinent.
McCormick will invest $115 million for an 85% stake in the joint venture, the U.S.-based spice maker said late Wednesday.
It expects the deal to dilute earnings-per-share by 2 cents to 3 cents this year, and then add to EPS beginning in 2012.
By 2015, McCormick said it expects emerging markets, including India, to contribute 12% of total sales, up from 9% in 2010.
McCormick, which also sells products under the Lawry's and Old Bay brands, first invested in India in 1994 when it joined the
A.V. Thomas Group
. Then last year McCormick acquired a 26% stake in
Eastern Condiments Private Ltd.
, a manufacturer and marketer of spices and seasonings in India and the Middle East.
McCormick shares were down 19 cents to $49.49 in trading early Thursday.
-- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here:
Miriam Reimer
.
>To follow the writer on Twitter, go to
http://twitter.com/miriamsmarket
.
>To submit a news tip, send an email to:
.
READERS ALSO LIKE:
>> Starbucks: Bagged Coffee Prices Raised 17%
>> 10 Top Dividend Stocks for 2011
>> 10 Top Buy-Rated Real Estate Stocks for 2011
>> Education Stocks: 2011 Outlook
>>See our new stock quote page.
Get more stock ideas and investing advice on our sister site,
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
