McCormick finalizes j.v. with Kohinoor Foods
Sept. 9, 2011
by Eric Schroeder
SPARKS, MD. — McCormick & Company, Inc. has completed the formation of a joint venture with Kohinoor Foods Ltd. The joint venture, which was first announced June 1, will operate under the name Kohinoor Specialty Foods India Private Ltd. and will sell and market the Kohinoor brand of food products in India.
Satish Rao, vice-president of business development at McCormick, will lead the new joint venture as managing director. Mr. Rao has been with McCormick for the past 16 years in leadership positions in India, China and the United States.
The Kohinoor joint venture will have approximately 275 employees and has a modern production facility at Bahalgarh, Haryana, India.
McCormick invested a total of 5.2 billion Indian rupees ($113 million) as part of the transaction, which includes an 85% interest in the new joint venture. McCormick said it will record approximately $4 million of fees and other costs related to the completion of the transaction in the fourth quarter. The joint venture is expected to generate about $85 million in its first year, and the business is expected to be accretive to McCormick’s earnings per share in 2012.