Smucker acquires interest in Chinese oats maker
ORRVILLE, OHIO — The J.M. Smucker Co. has acquired a non-controlling minority interest in Guilin Seamild Biologic Technology Development Co., Ltd., a Chinese manufacturer and marketer of oats products, for $35 million.
“Consistent with our goal of maintaining a global perspective, we are excited to enter the growing Chinese market through this partnership with Seamild,” said Richard Smucker, chief executive officer. “Seamild is a family-run business with a strong culture, similar to Smucker in many respects, and is an established leader in the rapidly growing oats category in China. The solid relationship our team has built with the Xie family has provided both parties with the confidence and enthusiasm to enter into this joint venture. This transaction represents an exciting first step as we look to develop a meaningful presence in China over time.”
Seamild’s products are distributed throughout China, and the company operates two manufacturing facilities in southern China with a third currently under construction in northern China. The transaction is not expected to have a material impact on Smucker’s earnings in fiscal 2012 or on a full-year basis.