Singapore-based Olam International has purchased the soluble coffee assets and business of Spain-based Seda Solubles for $52m through a bidding process under a court-managed scheme of receivership in Spain.
The soluble coffee assets of include Spain-based manufacturing and packaging facilities along with Russia-based storage and packaging facility and its brands.
Olam will also offer an additional $7m in capital expenditure in the coming couple of years for asset overhaul and maintenance.
Olam International coffee senior vice president Arun Sharma said, "Despite the financial situation surrounding Seda at the corporate level, the business has managed to retain its customer and operating franchise."
Seda Solubles produces soluble coffee and coffee related products including instant coffee varieties such as spray, agglomerated, agglomerated glass, freeze dried and espresso; mixes with coffee and without coffee and packing products such as jars, tins, sticks, sachets and pouches.
