12.19.14
Olam International Limited has agreed to acquire the global cocoa business of Archer Daniels Midland Company (ADM) for $1.3 billion, subject to closing adjustments.
One of the world’s largest processors and suppliers of cocoa liquor, powder and butter, ADM’s worldwide cocoa business comprises cocoa processing assets made up of eight factories with total capacity of 600,000 MT, 10 warehouses, 2 usines, 4 innovation centers, the iconic deZaan brand and its 2,150 plus customer franchise, and a marketing network across 16 countries. The acquired business does not include assets under ADM’s global chocolate business. Over 1,500 ADM Cocoa employees including 30 R&D professionals will join the combined cocoa entity as part of the transaction.
Olam’s Co-Founder, Group MD and CEO, Sunny Verghese said: “With Cocoa being a prioritized platform for investment, this proposed acquisition represents a transformational opportunity for Olam Cocoa to become an integrated global leader in a market with attractive growth prospects.”
One of the world’s largest suppliers of cocoa beans, Olam’s Cocoa business is one of six prioritized platforms identified “to invest and grow” in its strategic plan. With farm-gate origination, sustainability programs, trading and export presence in all major cocoa origins, except Brazil, in recent years, Olam Cocoa has integrated its supply chain by investing in origin processing in Côte d’Ivoire and Nigeria, and in value-added processing facilities in Spain and the U.K.
One of the world’s largest processors and suppliers of cocoa liquor, powder and butter, ADM’s worldwide cocoa business comprises cocoa processing assets made up of eight factories with total capacity of 600,000 MT, 10 warehouses, 2 usines, 4 innovation centers, the iconic deZaan brand and its 2,150 plus customer franchise, and a marketing network across 16 countries. The acquired business does not include assets under ADM’s global chocolate business. Over 1,500 ADM Cocoa employees including 30 R&D professionals will join the combined cocoa entity as part of the transaction.
Olam’s Co-Founder, Group MD and CEO, Sunny Verghese said: “With Cocoa being a prioritized platform for investment, this proposed acquisition represents a transformational opportunity for Olam Cocoa to become an integrated global leader in a market with attractive growth prospects.”
One of the world’s largest suppliers of cocoa beans, Olam’s Cocoa business is one of six prioritized platforms identified “to invest and grow” in its strategic plan. With farm-gate origination, sustainability programs, trading and export presence in all major cocoa origins, except Brazil, in recent years, Olam Cocoa has integrated its supply chain by investing in origin processing in Côte d’Ivoire and Nigeria, and in value-added processing facilities in Spain and the U.K.
