Sector News

Olam to acquire US almond processor for $54 million

October 23, 2019
Food & Drink

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.

By Emma Upshall

Source: FoodBev

comments closed

Related News

January 22, 2023

Danone unveils plan to cut methane emissions

Food & Drink

The company expects to eliminate 1.2 billion tons carbon dioxide equivalent of methane emissions by the end of the decade. The company says that it already reduced its methane emissions by around 14% between 2018 and 2020.

January 22, 2023

US researchers land US$2.4M to turn food waste into “affordable” bioplastics

Food & Drink

The “first-of-its-kind” pilot project will develop and demonstrate an affordable modular bioprocessing system to produce biodegradable bioplastics from food waste diverted from landfills. The three-year grant will test the scalability and feasibility of the conversion on a national and global scale.

January 22, 2023

Arkeon partners with ICL to transform CO2 into proteins

Food & Drink

Arkeon is allying with specialty mineral giant ICL to support the scaling of its fermentation bioprocess that converts CO2 into the 20 proteinogenic essential amino acids needed in human nutrition. The process, hailed as carbon negative, is based on the use of archaea, a group of microorganisms that naturally feeds off the greenhouse gas.

How can we help you?

We're easy to reach