Olam International cracks $232.6m acquisition deal with McCleskey

It’s the third-largest peanut sheller in the US.

Olam has been consistent in its game plan of selective investments in prioritised platforms.

According to a report by Maybank Kim Eng, Olam is acquiring 100% of US peanut sheller, McCleskey Mills Inc. (MMI), at an enterprise value of USD176m.

Maybank Kim Eng adds that MMI is the third-largest peanut sheller in the US with a market share of about 12% and annual capacity of 250,000 Farmer Stock Tons. It owns two processing facilities in Georgia, the heart of the US’s peanut growing region.

Here’s more from Maybank Kim Eng:

MMI owns or manages 20 buying points and farmer stock storage assets strategically scattered all over the southeast with a strong franchise among growers.

This acquisition is consistent with Olam’s game plan of selective investments in prioritised platforms. These include Edible Nuts. MMI should extend Olam’s participation in the US peanut value chain as its procurement and origination infrastructure can be linked up with Olam’s midstream processing.