Agribusiness and food company Olam International said Tuesday that it has entered into an agreement to acquire California-based almond processor and ingredient manufacturer Hughson Nut Inc. (HNI) from APB Partners LLC (APB). The transaction has an enterprise value of $54 million.
“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,” the managing director of Olam and chief executive officer of Edible Nuts, Ashok Krishen, said in a company press release. “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.”
The purchase of HNI offers Olam an integrated supply chain across the U.S., including whole nut processing and value-added ingredients production capabilities. HNI also has similar production and processing assets in Vietnam and Australia. Across its footprint, the California firm serves branded food manufacturers, retailers, and exporters in the EU, Japan, Korea, and the U.S.
“Combining HNI’s processing capabilities with Olam’s global network and Edible Nuts expertise will enhance our offering to customers and enable us to meet growing demand, in and outside the U.S.,” Krishen said.
Following the transaction, HNI’s 400 workers and its senior executive team will remain in place and the firm will continue to source almonds for processing from its existing grower-family vendors.
Olam’s purchase of HNI is projected to reach completion in November 2019.
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