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Olam acquires Brooks Peanut Company for $85m

FBR Staff Writer Published 10 June 2016

Olam International has acquired a 100% stake in Brooks Peanut Company for $85m.

Brooks, which was established in 1959, is based in Samson, Alabama. It is currently the sixth largest peanut sheller in the US.

The company processes about 110,000 Farmer Stock Tons (FST) with an annual capacity of 175,000 FST.

The acquisition follows Olam's purchase of US peanut sheller McCleskey Mills in December 2014.

Brooks Peanuts helps expand Olam's sourcing network into new areas in Alabama and Florida. It allows the company to further differentiate its product offering to customers globally and mitigate climate risks with a presence across different areas.

Olam global peanut business president Anupam Jindel said: "We are pleased to have the opportunity to acquire Brooks' procurement and processing capabilities, which complement our footprint in the US and significantly strengthen our network and product offerings to our customers and growers.

"Given our strengths in the US peanut industry and global marketing reach, we feel quite confident that we will be able to take Brooks to its full potential fairly quickly."

Olam will fund the acquisition by both internal accruals and existing debt facilities. The deal, which subject to regulatory approval, is expected to be finalised by the third quarter of this year.

Brooks president Barrett Brooks Said: "Olam has a significant global presence in the peanut industry and we are excited to be joining their team.

"I believe the combination of our modern processing assets and strong procurement franchise with Olam's expertise in peanut processing, marketing and risk management will be a very successful one."