| Date: |
30-06-2010 |
| Subject: |
McCormick Acquires 26% Stake In Indian Spice Co For $35 Million |
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McCormick & Co. (MKC: 38.57, 0, 0%) has agreed to acquire a 26% stake in Eastern Condiments Private Ltd., an India-based spice and seasoning business, for about $35 million, giving it a presence to the world's largest spice market.
Eastern Condiments, one of the few national brands in India, exports to 15 countries. Its average annual sales growth rate for the past three years was more than 25%, McCormick said.
"The partnership is an important opportunity for McCormick to participate in the rapid growth of the India food market as consumers seek high-quality more convenient packaged foods," said Chairman and Chief Executive Alan Wilson. The deal is set to close in the fourth quarter.
McCormick's earnings rose throughout the recession as U.S. consumers ate more meals at home. The company last week reported its latest-quarter profit jumped 31%, beating expectations.
Shares closed Monday at $39.27 and were inactive premarket. The stock is up 9% this year, outpacing the broader market.
Source : Fox Business
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