OLAM FOOD INGREDIENTS SWOOPS FOR SPICE MAKER OLDE THOMPSON
Leading US private label spices and seasonings manufacturer Olde Thompson is being acquired by Singapore-based Olam Food Ingredients (OFI) at an enterprise value of $950 million (€783.6m) as part of the latter’s international growth plans.
The agreement is described by OFI as a “transformative US acquisition” that will expand its private label capabilities across its entire portfolio. OFI, with revenue of around $9.4 billion in 2020, is making the purchase – subject to the usual regulatory checks – through its wholly-owned subsidiary Olam Holdings Inc. The deal is expected to close in Q2 2021.
Spices are a growing part of OFI’s overall portfolio and Olde Thompson offers a substantive growth platform. Private label currently accounts for approximately 26% of the US spices and seasonings industry which grew at an annual rate of approximately 15% between 2015 and 2019 (Source: IRI industry data; OFI estimates).
OFI CEO A. Shekhar commented: “This transaction builds on our 15-year partnership with Olde Thompson and is a logical move to combine our back-end strengths in global origination and sustainable supply chains, with Olde Thompson’s front-end capabilities in providing retail spice solutions to many major US retailers.”
Established in 1944, Olde Thompson has led, and benefited from, the increased penetration of private label in the spices and seasonings space in the US, as well as the growing demand for natural, organic, clean-label spices and ethnic, savoury flavours. It has two highly-automated bi-coastal facilities in Bayonne, New Jersey and Oxnard, California.