October 24, 2019

By Lynda Kiernan

International food and agribusiness giant Olam announced it has acquired almond processor and ingredient manufacturer Hughson Nut (HNI) from APB Capital at a total value of $54 million. The transaction, which is expected to be completed in November of this year, will be funded by a combination of internal accruals and existing debt facilities. 

A true global giant, Olam International’s business activities are in farming, agribusiness processing, distribution, food ingredients, animal feed, and fibers, conducted through supply chains spamming more than 60 countries. And the group states that the acquisition of HNI aligns with its Strategic Plan to “offer differentiated solutions, such as ingredients and product innovation, and to target new customer segments in co-manufacturing, food service, and e-commerce.”

Olam is one of the world’s largest almond growers, with 19,000 hectares (46.950 acres) 0f orchards in two hemispheres: 4,000 hectares (9,884 acres) in California and 15,000 hectares (37,065 acres) in Australia, guaranteeing production on a year-round basis. Its edible nuts business includes a global network of procurement, processing, and distribution operations for a portfolio consisting of almonds, cashews, hazelnuts, peanuts, pistachios, walnuts, sesame, quinoa, and chia.

“Our ambition is to grow Olam’s almond business into a vertically integrated player with a strong upstream presence in Australia and the U.S. and direct participation in the primary and ingredient processing space that can add value to our customers,” said Ashok Krishen, managing director and CEO of Edible Nuts, Olam.

“We see growing demand from consumers for healthy snacks and healthy plant protein – this is driving growth in new product applications and therefore the demand for almond ingredients, particularly in the U.S.”

Located in Hughson, California, HNI is ranked as a top-five almond processor in the state, with two primary processing facilities. However, the company also produces almond ingredients, including sliced and diced almonds, and almond flour at its new ingredients processing plant, which includes steam sterilization and pasteurization facilities.

These processing assets will enable Olam to fully integrate along the U.S. almond value chain and will complement Olam’s existing almond processing operations in Mildura, Australia, and Ho Chi Minh, Vietnam.

“Combining HNI’s processing capabilities with Olam’s global network and Edible Nuts expertise will enhance our offering to customers and enable us to meet growing demand, in and outside the U.S.,” said Krishen.

With previous backing from three almond grower-family shareholders of APB Capital, HNI has built out an extensive customer base of branded food manufacturers, retailers, and exporters extending across the U.S., and into the EU, Japan, and Korea.

Once the deal is closed, HNI’s senior executive team and its 400 employees will remain in place, continuing to direct the company’s operations and leveraging the benefits generated by the synergies and capabilities of the combined businesses to grow the ingredients business.

The grower-family vendors will also remain in place, and will continue to supply HNI with almonds for processing.

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.