Hershey Co plans to buy the remaining 49 percent in its Indian joint venture that it does not already own, giving it full control of a chocolate business in one of the world's biggest markets.
Hershey said it will buy out its partner, Godrej Industries Ltd, and another minority shareholder.
Hershey will assume about $47.6 million in debt, and will own the Maha Lacto and Nutrine candy brands and the Jumpin and Sofit beverage brands, as well as the related factories.
The transaction is expected to close by the end of the third quarter, after which the wholly owned subsidiary will be called Hershey India.
In 2011, the Godrej Hershey joint venture had net sales of about $80 million and a net loss.
Hershey said the deal does not change its financial outlook.
Hershey shares were down 30 cents, or 0.4 percent, at $72.86 on the New York Stock Exchange.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app