SAN FRANCISCO (Thomson Financial) - Ruddick Corp. late Monday said its
sewing thread subsidiary, American & Efird Inc., has signed a joint venture
agreement with Vardhman Textiles Limited.
Financial terms weren't disclosed.
Under the agreement, American & Efird will manufacture, distribute and sell
sewing thread for industrial and consumer markets within India and for export
markets. A&E will own 35% of the joint venture with an option to acquire an
additional 14% over the next 5 years, Ruddick said.
Vardhman operates the second largest thread company in India with
thread-related sales of about $69 million in fiscal 2007. The company has been
licensed to manufacture and sell A&E branded products in India since March 2001.
The deal is expected to be completed in April, pending certain closing
conditions.
Shares of Charlotte, N.C.-based Ruddick closed the regular session up 10
cents at $35.93.
Katherine Hunt
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