Olam International has entered a deal to acquire all of California almond processor and ingredient manufacturer Hughson Nut (HGI) and related real estate assets from APB Partners for an enterprise value of US$54 million, the Singapore-listed agribusiness player said.
“The extensive processing capabilities of HNI will enable Olam to offer a fully integrated solution across the almond value chain from the U.S., including processed whole nuts and value-added ingredients, complementing similar capabilities in Australia and Vietnam,” Olam said.
Olam noted it’s already one of the largest almond growers globally, while HNI is a top-five almond processor in California. HNI has two primary processing facilities and also manufactures almond ingredients, such as sliced almonds and almond flour, the filing said.
The acquisition is in line with Olam’s strategic plan to offer differentiated products, such as ingredients, and to target new customer segments in manufacturing, food service and e-commerce, the agribusiness player said.
“Our ambition is to grow Olam’s almond business into a vertically integrated player with a strong upstream presence in Australia and the U.S. and direct participation in the primary and ingredient processing space that can add value to our customers,” Ashok Krishen, Olam’s managing director and CEO, said in the statement.
“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 U.S.,” he added.
The deal will be funded with a combination of internal accruals and existing debt facilities, Olam said, adding the acquisition is expected to be completed in November.