Ruddick Corporation (NYSE:RDK)
announced that its sewing thread subsidiary, American & Efird, Inc.
(A&E), has signed a joint venture agreement with Vardhman Textiles
Limited (Vardhman) to manufacture, distribute and sell sewing thread for
industrial and consumer markets within India and for export markets. The
agreement is subject to various customary conditions to closing and is
expected to be completed in April 2008. A&E will own 35% of the joint
venture with an option to acquire an additional 14% over the next 5
years. Financial terms of the deal were not disclosed.
Vardhman operates the second largest thread company in India with thread
related sales of approximately $69 million in fiscal year 2007 and has
been licensed to manufacture and sell A&E branded products in India
since March 2001. Vardhman will contribute all of its sewing thread
operations to the joint venture and A&E will contribute cash. The
headquarters of the joint venture will be in Ludhiana, located in
northern India.
Vardhman is a major integrated textile producer in India, manufacturing
and marketing yarns, fabrics, sewing threads, fiber and alloy steel,
with total consolidated sales of approximately $476 million in fiscal
year 2007.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive
Officer of Ruddick Corporation commented that, “This
strategic joint venture leverages the strengths of both companies to
expand thread sales in India’s rapidly growing
sewn products market and further expands A&E’s
presence in this important region of Asia.”
Ruddick Corporation is a holding company with two primary operating
subsidiaries: Harris Teeter, Inc., a leading regional supermarket chain
with operations in eight southeastern states and American & Efird, Inc.,
one of the world’s largest global
manufacturers and distributors of industrial sewing thread, embroidery
thread and technical textiles.
|