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There is some development on the MTR Foods sell-off front again. The company has been on the auction block for a while. Now the latest suitor being reported by The Economic Times is the US-based McCormick & Company, a leader in the manufacture, marketing and distribution of spices, seasonings and flavours. The deal may sealed in the next two weeks, and the Bangalore-based company's asking price is said to be in the range of Rs 350-400 crore. MTR makes ready-to-eat and ready-to-cook food ingredients and spices.

MTR was believed to have got interest from other buyers too, which included names like Tata Coffee (can't figure the synergy), Godrej, ITC, and even Wipro. Besides the private equity firms like Blackstone, Indivision and Actis were also believed to have been in some kind of talks with MTR Foods.

The Economic Times reports that the Maiya family, the owners of MTR Foods, decided to hang on as the valuations kept creeping up from Rs 250 crore to Rs 350 crore.

It apparently made sense to McCormick, even if it pays a slightly higher premium, because the company does not have Indian foods in its portfolio. Moreover it can also use MTR Foods facility to outsource some of its products manufacturing. McCormick was founded in 1889.

MTR Foods's investment banker N M Rothschild had put a price tag of Rs 300 crore on the company when it called for bids earlier this year. The Maiya family controls 59 per cent stake in the company, JP Morgan holds 26 per cent and Aquarius Capital holding 14-15 per cent.

Related:

JP Morgan Chase May Sell Its 26% Stake In MTR Foods

MTR Stake Sale To Take Time; PE Funds Interested Still

MTR Foods Sell-off Auction Hotting Up; Sept 25 Last Date For Bids