Agri-food company Olam International’s arm OFI (Olam Food Ingredients) is set to acquire Canada’s largest roasters of packaged coffee Club Coffee L.P. OFI will acquire Club Coffee at an enterprise value of CA$150mn (S$162mn), subject to working capital adjustments. The acquisition will be funded from available cash and debt facilities and excluding acquisition-related costs and charges. OFI notes that the acquisition would be accretive to current year earnings. OFI’s MD & CEO Vivek Verma said: “Combining Club Coffee’s expertise with OFI’s sustainable sourcing, can use sustainability insights platform At Source to deliver product traceability to customers, as well as giving them the ability to influence the wider economic, social and environmental impacts of products and their supply chains.”
Olam’s dollar bonds were trading flat with its 5.5% Perp at 100.2 yielding 4.42%.
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