Olam acquires 10% of Saudi flour mill
The equity consideration was around $18.02m.
A consortium comprised of the National Agricultural Development Company (NADEC), Al Rajhi International for Investment Company, Ajlan & Bros, and Olam International acquired the Food Security Holding Company (JVCo), tendered for privatisation by the National Centre for Privatization and the Saudi Grains Organization.
As a consortium member, Olam will participate as the technical partner with a minority stake of 10%, with an equity consideration of $18.02m (SAR49.5m). The company will have the responsibility for managing plants and operations. Utilising its extensive experience in owning and operating flour mills in West Africa, Olam will capitalise on its know-how and capabilities to achieve best in class efficiencies and profitability.
Wheat milling business president Saurabh Mehra said, "This investment supports our strategy to expand our wheat milling footprint in key markets across Africa and the Middle East. Over the past decade, Olam has built a world-class wheat milling business and established itself as a leading miller in Africa. This acquisition is part of our entry strategy into the Kingdom of Saudi Arabia."