Olam sells dairy plant for $23 million to Royal FrieslandCampina

SINGAPORE - Commodities firm Olam International has sold its dairy processing plant in Cote d'Ivoire for US$18.7 million (S$23.4 milloin) in cash to leading food and nutrition company Royal FrieslandCampina.

For an additional cash amount of US$6.3 million, it will allow Friesland to use its trademark "Pearl" for its sweet condensed and evaporated milk products in designated African countries, the firm said in a statement on Monday.

The disposal of the dairy plant is part of Olam's efforts to restructure its "dairy products" portfolio, and to focus on other aspect of its dairy production business.

Olam estimated that it will book a total of US$25 million in cash and a one-time pre-tax gain of about US$10 million when the deal is completed in the second quarter next year.