Olam inks JV with Sanyo Foods in Nigeria

Sanyo invests US$20m in Olam's instant noodles business.

In a release, Olam International Limited and Sanyo Foods Co. Ltd of Japan announced that they have agreed to set up a joint venture company in Nigeria to manufacture and distribute instant noodles in Nigeria and across sub-Saharan Africa.

Sanyo Foods will invest US$20 million in cash, for a 25.5% equity interest through issue of new shares by the JV that will house Olam’s instant noodles assets and business in Nigeria. Olam will hold the balance majority ownership of 74.5% in the JV with management control. The consideration has been arrived between both parties on a willing-buyer willing-seller basis. The transaction is subject to customary closing conditions.

Founded in 1953, Sanyo Foods is a global leader and Japan’s third largest player in the instant noodles business. It has established a leadership presence in China, Vietnam, Russia and North America through strategic partnerships.

In the past, Sanyo Foods has also acquired equity stakes in Tingyi Holdings in 1999 and King Lion of Russia in 2011 to catalyse the growth of these companies in their respective home markets. Tingyi Holdings is currently the market leader in China with 24 production facilities across the country.

The JV will draw on the strengths of both partners with Olam’s expanding marketing and distribution network across Nigeria and its pan-Africa presence as well as Sanyo Foods’ worldclass and innovative technology in the development and manufacturing of instant noodle
products, and new market development experience.