LT Overseas acquires rice firm in US
24 Dec 2007
Mumbai: Rice processing firm LT Overseas has acquired US-based rice firm Kusha Inc for an undisclosed amount.
LT Overseas, which owns the 'Dawat' basmati rice brand, made the acquisition through its wholly-owned subsidiary, LT Overseas North America Inc, California, the company said in a filing with the Bombay Stock Exchange (BSE).
''With this acquisition, the company will consolidate its share in the US market and expects to emerge as the leading player,'' LT said in a statement.
Kusha Inc, with revenues of around $40 million, currently holds a substantial share of the US rice market, the statement added.
A newspaper report had earlier estimated the value of the deal at $20 million.
LT Overseas will get Kusha's US and the entire trading business along with associations with rice firms in India, the report quoted the company's chairman VK Arora as saying.
LT's US subsidiary and Kusha has a revenue of about $40 million, the paper said.
"With the growing demand for basmati rice in the US, this is the perfect time to tap the market," the paper quoted Arora as saying.
