McCormick, a US-based spice manufacturer, has acquired a minority share in Eastern Condiments, a leading spice and seasoning business headquartered in Kerala. McCormick purchased a minority stake of 26% in Eastern Condiments for US$35 million through its Singapore-based subsidiary.
“This partnership is an important opportunity for McCormick to participate in the rapid growth of the India food market as consumers seek high-quality, more convenient packaged foods,” said Alan Wilson, chairman, president and CEO of McCormick.
McCormick’s successful bid for a stake in Eastern Condiments trumped a rival offer from the Norwegian conglomerate Orkla, which bought MTR, an Indian processed foods manufacturer, in 2007.
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The deal is McCormick’s second joint venture in India. In 1994 it acquired a 50% interest in India-based AVT McCormick Ingredients, which produces cleaned, steam sterilized, ready-to-use spice ingredients for the global market.
J Sagar Associates partner Akshay Chudasama led the team representing McCormick, while Bangalore-based MD&T Partners acted for Eastern Condiments. Economic Laws Practice represented New Vernon Private Equity on its exit from Eastern Condiments. The private equity firm acquired a 13% stake in the Kochi-based spice company in 2006.
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