Opening a door to the Chinese market, J.M. Smucker (NYSE:SJM) said on Monday it acquired a minority stake in privately-owned oatmeal maker Guilin Seamild Biologic Technology Development for $35 million.
The company, which is headquartered in the Guangxi province of China and makes oatmeal under the Seamild brand, operates two manufacturing facilities in southern China and is constructing a third in the northern part of the country slated to open later this year.
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"Consistent with our goal of maintaining a global perspective, we are excited to enter the growing Chinese market through this partnership with Seamild," Smucker CEO Richard Smucker said in a statement.
The Orrville, Ohio-based maker of Folgers coffee and Jif and Smucker peanut butter, said the transaction probably won’t have much of an impact on its profit until at least next year.