SPARKS, Md. (
is expanding its emerging-market footprint through a joint venture with India-based
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.
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