American & Efird Inc, the sewing thread subsidiary of holding company Ruddick, has entered into a strategic joint venture in Brazil with Millefios Participacoes Ltda .

Millefios, through its subsidiary Bonduki Bonfio Ltda, and affiliated company Bonduki, manufactures and distributes sewing thread in Brazil's industrial markets.

The joint venture will operate through Bonfio, which is headquartered in Sao Paulo, Brazil.

A&E will own 30 per cent of Bonfio with an option to increase its share ownership to 43 per cent. Financial terms of the deal were not disclosed.

The two have also signed a license agreement that will allow the Bonfio to expand its product line offerings to offer A&E's high quality branded products.

A&E president Fred Jackson said: "The joint venture will leverage the strengths of both companies to expand both apparel and non-apparel thread sales in Brazil's growing sewn products market.

"A&E branded products are specified by a number of international retailers and their sourcing partners and this joint venture will allow us to service their sewing and embroidery thread needs in this important market."