Singapore-based agricultural products and food ingredients processor Olam International has signed an agreement to acquire a complete stake in US-based Hughson Nut (HNI).
Olam will acquire the almond processor and ingredient manufacturer in addition to associated real estate assets from APB Partners in a deal valued at $54m.
The deal is in line with Olam’s strategic plan to offer distinguished solutions, including ingredients and products innovation, as well as a focus on new customer segments in co-manufacturing, foodservice and e-commerce.
Additionally, the transaction is expected to help Olam to offer a fully integrated solution across the almond value chain from the US, which includes processed whole nuts and ingredients, complementing similar capabilities in Australia and Vietnam.
HNI operates two primary processing facilities.
The company is engaged in the production of almond ingredients, including sliced and diced almonds and almond flour at its new processing plant, which houses steam sterilisation and pasteurisation facilities.
Olam Edible Nuts managing director and CEO 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.
“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.”
Olam intends to fund the acquisition using a combination of internal accruals and existing debt facilities.
Completion of the deal is subject to customary closing conditions and is expected to take place next month.
Upon completion of the deal, Olam intends to retain HNI’s senior executive team and its 400 employees, who will continue to manage the existing operations and focus on growing the ingredients business.
