Olam Group‘s wholly owned Olam Food Ingredients (OFI) has entered a deal to acquire Club Coffee L.P., a Canadian roaster of packaged coffee for “at home” use, for C$150 million, the Singapore-listed company said in a filing to SGX Tuesday.
OFI said it would fund the deal with existing cash and debt facilities.
OFI said Club Coffee was aligned with its strategy for sustainable, value-added food and beverage ingredients and services, citing coffee company’s private label and co-manufactured channel as “high value.” Club Coffee serves private-label customers and retail brands, the filing said.
Vivek Verma, CEO and managing director for coffee at OFI, said both OFI and Club Coffee focus on sustainable products and contract manufacturing, particularly in the high-growth private-label business.
“Combining Club Coffee’s expertise with ofi’s sustainable sourcing, we can use our sustainability insights platform AtSource to deliver product traceability to our customers, as well as giving them the ability to influence the wider economic, social and environmental impacts of our products and their supply chains,” Verma said in the statement.
John Pigott, CEO of Club Coffee, said the deal would combine OFI’s sustainable green coffee supply chain business with his company’s sustainable packaging platform.
The deal is expected to be completed in the second quarter of this year, subject to regulatory approvals, the filing said.
OFI, which plans to seek listings on the London Stock Exchange and the Singapore Exchange, provides sustainable food products and ingredients, with businesses in cocoa, coffee, dairy, nuts and spices. Its businesses include its own farming operations and manufacturing facilities. Its parent, Olam Group, is a food and agri-business, supplying food ingredients feed and fiber.