In a nut shell: Olam enters hazelnuts business

Olam will acquire 100% of equity interests in hazelnuts exporter from Turkey.

A company announcement said the proposed acquisition of 100% of equity interests in the Progida Group, subject to closing conditions, is for an enterprise value of approximately US$38 million.

According to Olam, the Progida group is a leading manufacturer and supplier of natural and processed Turkish hazelnut kernels. “Turkey is the world’s largest producer of Hazelnuts accounting for 70% of world Hazelnut production,” said Olam.

The transaction involves the acquisition of Progida’s key assets and processing capabilities, which comprise ingredients processing facility in the Giresun region of Turkey with a total capacity of 40,000 metric tonnes of kernel per annum and two leased cracking units in the Ordu region, a key hazelnut growing region in Turkey.

The acquisition would be funded through internal accruals. The acquisition will be both value and earnings accretive from the first full year after consolidation.