Olam International has agreed to acquire Californian almond processor and ingredient manufacturer Hughson Nut from APB Partners for $54 million, in a move to extend its existing portfolio and meet growing demand.
The deal also includes the purchase of Hughson Nut’s associated real estate assets.
The acquisition will enable Olam to utilise Hughson Nut’s extensive processing capabilities to offer a fully integrated solution across the almond value chain from the US, complementing similar capabilities in Australia and Vietnam.
Global food and agri-business Olam has a global network of procurement, processing and distribution operations across a portfolio which includes almonds, hazelnuts, pistachios, walnuts, sesame and quinoa.
Hughson Nut manufactures almond ingredients, such as sliced and diced almonds and almond flour in its ingredients processing plant, which also houses steam sterilisation and pasteurisation facilities.
The Californian-based company has built a strong customer franchise in the US and a growing customer base in the EU, Japan and Korea, which include branded food manufacturers, retailers and exporters, all of which will benefit the Singapore-headquartered Olam.
The deal aligns with Olam’s strategic plan in offering differentiated solutions, such as ingredients and product innovation, and to target new customer segments in co-manufacturing, food service and e-commerce.
Olam’s managing director and CEO of Edible Nuts, Ashok Krishen, said: “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.”
Once the deal has taken place, Hughson Nut’s senior executive team and its 400 employees will continue to manage the existing operations, while benefitting from the synergies and capabilities of the combined business.
The deal is expected to be completed in November 2019, subject to customary closing conditions.
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