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Olam completes aquisition of ADM's global cocoa business

OLAM International has completed the acquisition of ADM's global cocoa business on Oct 16.

The deal was done at an enterprise value of US$1.2 billion (on a cash free and debt free basis) and will make newly-created Olam Cocoa a global integrated supplier of cocoa products, said the firm in an announcement to the Singapore Exchange.

The closing value of the deal was estimated at US$550 million in fixed assets and US$654 million in working capital subject to the usual purchase price adjustment post closing.

Over 2,400 dedicated cocoa specialists - 1,500 of whom have joined from ADM - will be based in 11 producing countries.

"This is a transformation of an already strong business platform with attractive market prospects that is poised to contribute significantly to group Ebitda (earnings before interest, taxes, depreciation and amortisation) by 2018," said Olam's co-founder, group managing director and chief executive Sunny Verghese.