J. M. Smucker Acquires Interest in China-Based Company
The J. M. Smucker Company acquired a non-controlling minority interest in Guilin Seamild Biologic Technology Development Co., Ltd., a privately owned manufacturer and marketer of oats products headquartered in Guilin in the Guangxi province of China, for approximately $35 million.
Seamild's product portfolio, primarily consisting of oatmeal sold under the leading Seamild brand, is distributed in retail channels throughout China. Seamild operates two manufacturing facilities, both located in southern China. A third facility, currently under construction in northern China, is expected to begin production in late summer 2012. The transaction is not expected to have a material impact on Smucker's earnings in fiscal 2012 or on a full year basis. Smucker will account for this investment under the equity method of accounting.
"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."
"Through this transaction with Seamild, we are pleased to have the opportunity to align ourselves with a well-respected company and brand in China," added Steve Oakland, president, International, Foodservice and Natural Foods. "Seamild's portfolio of quality, trusted products aligns with Smucker's strategy of owning and marketing leading food brands. Seamild's strong focus on brand building and meeting the evolving needs of consumers complements our approach to growing brands. We look forward to the opportunity to leverage our respective strengths through this relationship."
Seamild's product portfolio, primarily consisting of oatmeal sold under the leading Seamild brand, is distributed in retail channels throughout China. Seamild operates two manufacturing facilities, both located in southern China. A third facility, currently under construction in northern China, is expected to begin production in late summer 2012. The transaction is not expected to have a material impact on Smucker's earnings in fiscal 2012 or on a full year basis. Smucker will account for this investment under the equity method of accounting.
"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."
"Through this transaction with Seamild, we are pleased to have the opportunity to align ourselves with a well-respected company and brand in China," added Steve Oakland, president, International, Foodservice and Natural Foods. "Seamild's portfolio of quality, trusted products aligns with Smucker's strategy of owning and marketing leading food brands. Seamild's strong focus on brand building and meeting the evolving needs of consumers complements our approach to growing brands. We look forward to the opportunity to leverage our respective strengths through this relationship."