Olam international acquires US almond processor for $54 million
Olam International Ltd has announced that it has signed a purchase agreement to acquire a 100 percent interest in Californian almond processor and ingredient manufacturer Hughson Nut Inc (HNI).
Global food and agri-business, Olam International Limited (Olam), has announced that it has signed a purchase agreement to acquire a 100 percent interest in Californian almond processor and ingredient manufacturer Hughson Nut Inc (HNI) and associated real estate assets from APB Partners, LLC (APB) at a total enterprise value of $54 million.
Olam is one of the world’s largest growers of almonds with orchards in California and Australia, delivering year-round almonds to customers. The processing capabilities of HNI will reportedly enable Olam to offer a fully integrated solution across the almond value chain from the US, including processed whole nuts and value-added ingredients, complementing similar capabilities in Australia and Vietnam.
HNI has a customer franchise in the US and a growing customer base in the EU, Japan and Korea, which include branded food manufacturers, retailers and exporters.
The acquisition of HNI hopes to add to Olam’s Strategic Plan which is said to offer differentiated solutions, such as ingredients and product innovation, and to target new customer segments in co-manufacturing, food service and e-commerce.
“Our ambition is to grow Olam’s almond business into a vertically integrated player with a strong upstream presence in Australia and the US and direct participation in the primary and ingredient processing space that can add value to our customers. We see growing demand from consumers for healthy snacks and healthy plant protein – this is driving growth in new product applications and therefore the demand for almond ingredients, particularly in the US,” said Olam’s Managing Director and CEO of Edible Nuts, Ashok Krishen.
“Combining HNI’s processing capabilities with Olam’s global network and Edible Nuts expertise will enhance our offering to customers and enable us to meet growing demand, in and outside the US,” Krishen added.
The acquisition will be funded by a combination of internal accruals and existing debt facilities. Subject to customary closing conditions, the transaction is expected to be completed in November 2019. It is also expected to be earnings and returns accretive from the first year after consolidation.