Lion Corporation said today (29 September) that it will sell its spice and seasoning JV with US spice maker McCormick to Tokyo-based food company Youki Food Co. The deal is expected to be completed in November.
Lion said that it wanted to focus its resources on home products and pharmaceuticals.
“Lion is aiming to enhance corporate and shareholder value by undertaking structural reforms and strengthening the Company’s profit structure through the implementation of systematic “selection and focus” initiatives,” the Japanese maker of toothpaste and deodorant said.
Youki is a Japanese manufacturer of Chinese and ethnic food.
Lion will liquidate McCormick-Lion as Youki Food plans to take over the production facilities, while keeping on some 60 employees there. It will launch its sales of McCormick brand spices in January 2007.
The value of the transaction was not disclosed.