Olam International acquired 85 percent of YTS Holdings, which owns all of cocoa processor PT Bumitangerang Mesindotama, or BT Cocoa, for US$90 million (S$121.41 million), expanding its footprint in Indonesia’s cocoa market, it said in a filing to SGX on Tuesday.
“The acquisition satisfies increasing customer demand for full integration within the cocoa supply chain by bringing together Olam Cocoa, a world leader in traceable cocoa bean sourcing and a leading processor of cocoa ingredients, and BT Cocoa, the largest cocoa processor in Indonesia,” Olam said in the statement.
It added that Indonesia is the world’s sixth largest cocoa producing country and Asia appeared set to become the second largest consumer of cocoa ingredients globally, led by China, India, Japan and the Philippines, according to Olam research.
“BT Cocoa’s prominence as an existing supplier to leading chocolate and confectionery manufacturers in the region presents new market opportunities for Olam Cocoa’s ingredients portfolio, such as value cocoa powders brand Huysman, which was launched in Asia in 2018, and to complement premium cocoa brand deZaan,” it said.
The deal adds 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity, Olam said.
Olam Cocoa had already been working with BT Cocoa for nearly three years as part of a collaboration which included “considerable” improvements in financing and operations, including BT Cocoa reaching a 30 percent reduction in energy consumption, the filing said.
The remaining 15 percent of Singapore-based YTS is held by the founders of BT Cocoa, Piter Jasman and family, it said.
Piter Jasman said in the statement that the deal would allow BT Cocoa to expand its market by enhancing quality, safety and by providing ethically responsible cocoa products.
“The combination of Olam Cocoa’s expertise as the leading global supplier and processor of sustainable cocoa, with BT Cocoa’s strong local network, will provide our customers with increasing benefits,” he said.