J.M. Smucker Co. bought a minority stake in the Chinese oatmeal company Guilin Seamild Biologic Technology Development Co. for about $35 million, the company said Monday, marking an initial entry into the Chinese market.
Guilin's oatmeal is sold under the Seamild brand and distributed to retailers throughout China. The company operates two manufacturing facilities in southern China. It's also building a third facility in northern China that is expected to start production in late summer 2012, J.M. Smucker said.
The maker of Folgers coffee and Jif peanut butter, as well as its namesake spreads, called the deal a first step toward establishing a significant presence in the Chinese market.
The Orrville, Ohio, company said it doesn't expect the acquisition to have much of an impact on its profit for fiscal 2012 or on a full-year basis.