Olam International has said its acquisition of a US vegetable products business from ConAgra Foods will help the commodities group achieve global growth in the category.
Singapore-listed Olam has agreed to buy ConAgra’s Gilroy Foods & Flavors business for US$250m and said the deal would help it build scale in the US and grow its spices and dehydrates business worldwide.
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“Gilroy has a strong grower franchise and enjoys significant brand equity with
key customers,” said Ashok Krishen, Olam’s MD and global head for spices & dehydrates.
“With Gilroy’s experienced management and operations team, we can scale up our combined dehydrates operations in the US as well as grow the business globally across geographies where Olam has other existing operations.”
Olam’s assets in the US include businesses acquired from SK Foods, De Francesco & Sons and Key Foods Ingredients.
The deal with ConAgra – already a customer of Olam – will “open up other
opportunities” with food companies that are outsourcing their ingredient and raw-material supply chain to third party suppliers to concentrate on value-added or branded businesses, the commodities business added.
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