Press Release

    Olam International Acquires Soluble Coffee Assets and Businesses of Seda Solubles for US$52m

    Press release

    Olam International Limited (“Olam”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, announced today that it has acquired the soluble coffee assets and business (“Coffee Business Unit” or “CBU”) of Seda Solubles (“Seda”) for US$52 million through a bidding process under a court-managed scheme of receivership in Spain.  The consideration shall be discharged on a cash basis from internal accruals.

    Seda is a leading producer of soluble coffee and coffee related products with a fully integrated production platform. 

    The key assets acquired consist of a manufacturing facility and a packaging facility in Spain, a storage and packaging facility in Russia and Seda’s brands.  The acquisition of CBU is in line with the growth strategy of Olam’s Coffee business. 

    Olam’s Senior Vice President, Coffee, Arun Sharma said: “Despite the financial situation surrounding Seda at the corporate level, the business has managed to retain its customer and operating franchise.” 

    Olam plans to commit a further US$7 million in capital expenditure over the next two years for asset overhaul and maintenance. 

    The business is expected to deliver an EBITDA margin of 20% and an Equity IRR of 30%. 

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    About Olam International Limited

    Olam International is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, supplying various products across 16 platforms to over 12,300 customers worldwide. From a direct presence in more than 65 countries with sourcing and processing in most major producing countries, Olam has built a global leadership position in many of its businesses, including Cashew, Spices & Dehydrates, Cocoa, Coffee, Rice, Cotton and Wood Products. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 40 largest listed companies in Singapore in terms of market capitalisation and is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. Olam is the only Singapore firm to be named in the 2009, 2010 and 2012 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region. It is also the first and only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune. More information on Olam can be found at www.olamgroup.com.

    ISSUED ON BEHALF OF :

    Olam International Limited
    BY : Citigate Dewe Rogerson, i.MAGE Pte Ltd
    1 Raffles Place
    #26-02 OUB Centre
    Singapore 048616

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