Olam expands business with US spice manufacturer acquisition
Olam Food Ingredients is set to acquire Olde Thompson for US$900m.
Singapore-listed Olam Food Ingredients is in the process of acquiring Olde Thompson, a leading US private label spices and seasonings manufacturing, for an enterprise value of US$950m.
"This transaction builds on our long 15-year partnership with Olde Thompsonandis a logical move to combine our ‘back-end’ strengths in global origination and sustainable supply chains, with Olde Thompson’s ‘front-end’ capabilities in providing retail spicesolutionsto many major US retailers," said Olam Foods CEO A. Shekhar in a bourse disclosure.
Olde Thmpson has two automated bi-coastal facilities in New Jersey and California, where it produces and distributes spices, seasonings, baking ingredients and spice-related housewares to the rest of the country.
The acquisition is expeted to be earnings and margin accretive to Olam Foods from the first year onwards, and generate potential EBITDA of US$25-30m.
The transaction is expected to close in the second quarter.