Olde Thompson is a 77 year old family owned spice manufacturer, and it is the largest manufacturer of salt and pepper mills in the world and the largest dedicated manufacturer of private-label dry spices and seasons in North America. Olam Food Ingredients, a division of parent Company Olam International, focuses on the consumer products market, prioritizing herbs, spices and flavorings. After announcing that this division would be taken public in 2022, the Company has been on the lookout for acquisitions as it continues to try and strengthen its consumer product portfolio. Megan Poinski details this acquisition in a recent article on Food Dive.
Olam Food Ingredients is purchasing Olde Thompson from Kainos Capital, who had acquired Olde Thompson in 2018. During its ownership, Kainos Capital also facilitated the acquisition and integration of the Gel Spice Company, as well as helped grow Olde Thompson’s output. This deal is reported to be worth $950 million and is expected to add between $25-$30 million in core earnings to Olam Food Ingredients. In a recent interview, Olam Foods CEO said “The U.S. is the largest market for spices, worth almost $500 billion a year and growing at a rate of 5% over the last several years. Olde Thompson already has inroads in the U.S. market, plus connections to large retailers, which means the acquisition should quickly make money for Olam.” This is Olam Foods’ second large acquisition after having previously purchased Mizkan America’s chile pepper business for $108.5 million.
Quazar was not involved in this transaction.
Read the full Article here: https://www.fooddive.com/news/olam-to-buy-private-label-spice-maker-olde-thompson-for-950m/599289/
