Olam International is acquiring a 100% interest in Brooks Peanut Company at an enterprise value of US$85 million ($114.5 million).
Brooks is the sixth largest peanut sheller in the US, processing 110,000 Farmer Stock Tons (FST) with an annual capacity at 175,000 FST. Founded in 1959, the company is based in Samson, Alabama in the productive Southeast peanut growing region of the US.
Olam’s acquisition of Brooks follows its acquisition of US peanut sheller McCleskey Mills Inc. in December 2014. The latest acquisition will further integrate Olam’s value chain into direct farm procurement and shelling, says the group.
It will also strengthen Olam’s market position as the third largest peanut sheller in the US and help expand its sourcing network into new areas in Alabama and Florida.
With Brooks, Olam can also further differentiate its product offering to customers globally and mitigate climate risks with a diversified presence across different growing areas.
Joe West, Head of Olam’s US peanut shelling operations, said: “The acquisition will be earnings and talent accretive from the beginning... 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.”
Olam shares closed 1.1% higher at $1.90.
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Brooks is the sixth largest peanut sheller in the US, processing 110,000 Farmer Stock Tons (FST) with an annual capacity at 175,000 FST. Founded in 1959, the company is based in Samson, Alabama in the productive Southeast peanut growing region of the US.
Olam’s acquisition of Brooks follows its acquisition of US peanut sheller McCleskey Mills Inc. in December 2014. The latest acquisition will further integrate Olam’s value chain into direct farm procurement and shelling, says the group.
It will also strengthen Olam’s market position as the third largest peanut sheller in the US and help expand its sourcing network into new areas in Alabama and Florida.
With Brooks, Olam can also further differentiate its product offering to customers globally and mitigate climate risks with a diversified presence across different growing areas.
Joe West, Head of Olam’s US peanut shelling operations, said: “The acquisition will be earnings and talent accretive from the beginning... 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.”
Olam shares closed 1.1% higher at $1.90.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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