US based spice-maker McCormick & Company Inc today said it will fully acquire Kohinoor Speciality Foods India, which markets Kohinoor basmati rice, from Kohinoor Foods Ltd (KFL) for an undisclosed amount.
The company, which already has 85 per cent stake in Kohinoor Speciality, will further acquire the remaining 15 per cent.
The acquisition would make McCormick 100 per cent owner of the Indian business of the rice brand 'Kohinoor branded basmati rice', the company said in statement.
In September 2011, rice exporter Kohinoor Foods and McCormick had set up a joint venture -- Kohinoor Speciality Foods India -- for marketing basmati rice and other food products in India.
In the joint venture, McCormick has 85 per cent stake and rest was with Kohinoor Foods.
Commenting on the development, McCormick's President, International Business, Malcolm Swift said: "We have invested in India continuously for over two decades and are deeply committed to the Kohinoor brand in this market.
McCormick had invested a total of Rs 520 crore in the joint venture deal.
When contacted, McCormick & Company Inc declined to comment on the acquisition cost, citing confidential clause.
"Our goal is to leverage Kohinoor brand from a Basmati rice brand to a 'Rice and Spice leader in this market through our passion for flavor," Swift said.