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U.S.-based Ruddick Corporation announced today that its subsidiary, American & Efird, Inc. (A&E), has entered into a strategic joint venture in Brazil with Millefios Participações Ltda. (Millefios) on September 5, 2005.
Millefios, through its subsidiary Bonduki Bonfio Ltda. and an affiliated company (Bonduki), manufactures and distributes sewing thread in the industrial markets of Brazil. Bonduki, with net sales of approximately US$ 9 million in calendar 2004, has been in business since 1941.
The new joint venture will operate through Linhas Bonfio S.A. (Bonfio), which is headquartered in São Paulo, Brazil. Bonfio has operations in the cities of Americana, Itaquaquecetuba and Três Lagoas, Brazil.
A&E will own 30% of Bonfio with an option to increase its share ownership to 43%. Financial terms of the deal were not disclosed. A&E has also entered into a License Agreement with Bonfio that will allow Bonfio to expand its product line offerings to offer A&E's high quality branded products.
A&E is a leading manufacturer and distributor of sewing thread and specialty engineered yarns for worldwide industrial and consumer markets, with sales of US$ 296 million in fiscal 2004.
This joint venture will give A&E the opportunity to participate in the important textile and apparel market of Brazil and expand A&E's global presence.
Fred A. Jackson, President of A&E stated, "The joint venture will leverage the strengths of both companies to expand both apparel and non-apparel thread sales in Brazil's growing sewn products market."
Jackson added, "A&E branded products are specified by a number of international retailers and their sourcing partners and this joint venture will allow us to service their sewing and embroidery thread needs in this important market."
Ruddick Corporation is a holding company with two primary operating subsidiaries: Harris Teeter, Inc., a regional chain of supermarkets in six southeastern states and American & Efird, Inc., a leading manufacturer and distributor of industrial sewing thread with global operations.
Ruddick Corporation - www.ruddickcorp.com
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