Singapore-based ingredients group Olam International has acquired the bulk and own-label operations of Indian spice maker Vallabhdas Kanji (VKL).

Under the US$18m deal, which was announced last week, the assets include VKL's spice processing facility in Cochin, India, its pepper grinding factory in Vietnam and its sales and distribution operations in North America.

Olam president and global head for spices and vegetable ingredients Greg Estep said the acquisition offered the company us "a unique opportunity to accelerate our entry into new, attractive product segments namely chilli and turmeric, as well as into the private-label segment of the value chain".

He said the deal would complement Olam's pepper production in Vietnam capsicum production and sales and marketing activities in the US and added the company would benefit from cost synergies by combining its sourcing, processing and distribution capabilities under one network.