SINGAPORE - Olam International said on Thursday (June 9) that it has acquired Alabama's biggest peanut sheller, Brooks Peanut Co (Brooks), for an enterprise value of US$85 million (S$114.5 million).
Its purchase of Brooks, which follows its acquisition of US-based peanut sheller McCleskey Mills Inc in December 2014, further integrates its direct farm procurement and shelling, said Olam in a filing to the Singapore Exchange.
Olam said that with its acquisition of Brooks, currently the sixth largest peanut sheller in the US, the company can further differentiate its product offering to customers globally and mitigate climate risks with a diversified presence across different growing areas.
Said Joe West, head of Olam's US peanut shelling operations: "The acquisition will be earnings and talent accretive from the beginning. Brooks has a strong leadership team which will continue to manage the operations from Alabama and also help extract synergy value with our existing peanut business. Our combined team will be able to offer highly differentiated products like hi-oleic, bar-ready peanuts to our discerning customers and also our high quality seed to Brooks' growers, while capitalising on the growth prospects in the industry."
The edible nuts business is one six identified for accelerated investments and growth in Olam's 2016-2018 strategic plan.