The Singapore-based food and agribusiness company Olam International has acquired the peanut processing business of the South African Senwes group, for an undisclosed sum.

Olam said the acquisition of the peanut shelling and processing facility was part of its strategy to establish direct procurement, shelling and blanching operations for its edible nuts business.

Olam added that the purchase would allow it to improve margins, ensure tighter control of its peanut business, and increase its market share in the high-value South African peanut market. The company said it expected the acquisition to be value and earnings accretive within the first year.

The Senwes unit is one of the largest peanut shelling and processing facilities in South Africa, with the capacity to process 20,000 metric tons of in-shell peanuts per year.