SINGAPORE (THE BUSINESS TIMES) – Olam Group on Tuesday (April 26) mentioned that Olam Food Ingredients (OFI), its wholly owned meals components unit, will acquire Canada’s Club Coffee at an enterprise value of C$150 million (S$162 million).
Club Coffee is one of Canada’s largest espresso roasters and packaging options suppliers to the “at home” section. It serves non-public label prospects and retail manufacturers from its amenities in Toronto.
The acquisition of Club Coffee will broaden OFI’s non-public label capabilities in North America, agri-food large Olam mentioned in a bourse submitting. It expects the transaction to be accomplished within the second quarter of 2022, topic to regulatory approval and different situations.
The C$150 million consideration takes into consideration Club Coffee’s enterprise efficiency and prospects, in addition to the capabilities and synergies between the Canadian firm and OFI.
The deal might be funded from OFI’s current money and debt amenities. Excluding acquisition-related prices and costs, the acquisition is anticipated to be accretive to current-year earnings, OFI added.
It famous that the non-public label and co-manufactured channel is a pretty, high-value and rising half of its portfolio.
OFI was created in early 2020 following a reorganisation inside Olam International. It consists of companies of cocoa, espresso, dairy, nuts and spices.
In March, it introduced a delay in its plans for an preliminary public providing (IPO). It mentioned it not expects its deliberate IPO to happen within the second quarter of 2022 as beforehand anticipated. This got here within the mild of present market situations due to the continuing battle in Ukraine.
It added that it stays dedicated to pursuing a public itemizing of the enterprise and can “evaluate the appropriate timing of such a listing on an ongoing basis, taking into account prevailing market conditions”.
Shares of Olam Group have been buying and selling at $1.69, down two cents or 1.2 per cent, at 11.42am, after the announcement.
