Olam unit gets US$1b loan to finance acquisition of US spice maker Olde Thompson

AGRI-BUSINESS firm Olam International's wholly owned subsidiary Olam Holdings BV has secured a US$1 billion loan, which will be used to finance the acquisition of US spice maker Olde Thomson.

The two-year committed loan facility is guaranteed by Olam, the mainboard-listed firm said in a regulatory update on Friday.

Olde Thomson is a manufacturer of private label spices, seasonings, baking ingredients and spice-related housewares in the US.

Olam had in April proposed to buy Olde Thompson from its management shareholders and private equity firm Kainos Capital at an enterprise value (EV) of US$950 million through its wholly-owned subsidiary Olam Food Ingredients (OFI).

Olam had said that the proposed purchase will build on its recent two acquisitions in the North American spices sector, namely US-based chilli pepper business Mizkan America, and the onion ingredients business of Cascade Specialties.

The proposed deal is also expected to enable OFI to combine its strengths in global origination and sustainable supply chains with Olde Thompson's capabilities to provide retail spice solutions to offer differentiated value to customers.

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Through its purpose to "re-imagine global agriculture and food systems", Olam said that it aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities and other stakeholders.

BNP Paribas, DBS, HSBC, Mizuho Bank MUFG Bank and Standard Chartered Bank participated as senior mandated lead arrangers of the facility. HSBC is the facility agent.