Textile maker American & Efird Inc., a subsidiary of holding company Ruddick Corp., said Monday it signed a joint venture agreement with Vardhman Textiles Ltd. to make, distribute and sell sewing thread in India and for export markets.
Under the terms of the agreement, American & Efird said it will own 35 percent of the joint venture with an option to buy another 14 percent over the next five years. Financial terms were not disclosed.
Vardhman will contribute its sewing thread operations to the joint venture and American & Efird will contribute cash. The joint venture will be headquartered in northern India.
The agreement is expected to be completed in April.
Vardhman operates the second largest thread company in India, American & Efird said. The company has been licensed to make and sell American & Efird branded products since March 2001.
Shares of Ruddick rose 10 cents to close at $35.93.
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