Ruddick's A&E buys out thread yarn spinning Co Jimei
13 Sep '05
3 min read
Ruddick Corporation announced its subsidiary, American & Efird Inc (A&E), has acquired an 80 percent ownership interest in Jimei Spinning Company Ltd (Jimei) located in Hengshui City, Hebei Province, China on September 9, 2005.
Jimei is a thread yarn spinning company created from the operations of Hengshui Yuanda Group Co Ltd. (Yuanda) with sales of approximately $14 million in calendar 2004.
The thread yarn operations of Jimei will consist of a manufacturing facility located on the same complex as A&E's current thread yarn spinning joint venture in Hengshui City, Hengmei Spinning Company Ltd (Hengmei).
Simultaneously with this acquisition, A&E acquired an additional 20% interest in Hengmei from its joint venture partner Hengshui North Thread Industry Company (North Thread), bringing its total ownership interest to 80 percent. North Thread has also entered into an agreement to acquire the remaining 20 percent ownership interest of Jimei from Yuanda.
As a result of these transactions, the ownership of the combined companies would be consolidated among A&E and North Thread, creating an efficient and unified thread yarn spinning operation. Financial terms of the deals were not disclosed.
Fred A. Jackson, President of A&E, stated, "The acquisition of Jimei will expand A&E's thread yarn capacity to support our growing needs in Asia. Company plans to continue to support the current Jimei customers and utilize part of the production capacity within our global supply chain. By combining our similar production lines between the two facilities, it also expects to operate the combined entities more efficiently."
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