Olam gets US$1b loan to acquire US spice manufacturer
Olam International Limited, through a subsidiary, has two years to pay for the acquisition of Olde Thomson.
Olam International Limited, through its subsidiary Olam Holdings, has secured a US$1b loan to acquire US-based spice manufacturer Olde Thomson.
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.
In April, Olam announced that Olde Thomson has an enterprise value of US$950m.