ConAgra Foods Inc. has taken another step in its growth plan by spending $10 million to become the majority shareholder in Agro Tech Foods Ltd., a food producer based in India.
The companies have had a partnership since 1997, but the latest investment shows what ConAgra's chief executive, Gary Rodkin, has said: ConAgra is committed to its international presence, especially in high-growth countries like India and Mexico.
The Agro Tech deal, coupled with ConAgra's purchase of the private label pretzel maker National Pretzel Co. in mid-November, punctuates the Omaha-based packaged food giant's appetite for growth.
"We will continue to work with Agro Tech's management team to expand its business and our investment in this important region," Rodkin said.
After ConAgra failed multiple times to engage in acquisition talks with Ralcorp Holdings Inc. of St. Louis, Rodkin said the company remained committed to growth, particularly in its international and private-label businesses.
Over the last five years, Agro Tech, which produces edible oils, pudding, peanut butter and microwave popcorn, has experienced steady earnings growth. In the 2006-07 fiscal year, the company posted earnings of 6.60 rupees, or about 13 cents, per share. That compares with 13.04 rupees, or 25 cents, per share during 2010-11.
Contact the writer: 402-444-1414, ross.boettcher@owh.com
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