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Olam International buys Archer Daniels Midland cocoa business for $1.3 billion

Staff writer |
Olam International Limited has agreed to acquire the global cocoa business of Archer Daniels Midland Company (ADM) at an enterprise value on a cash and debt free basis of $1.3 billion, comprising fixed assets of $550 million and working capital of $750 million, subject to closing adjustments.

One of the world's largest processors and suppliers of cocoa liquor, powder and butter, ADM's worldwide cocoa business (ADM Cocoa) comprises cocoa processing assets made up of 8 factories with total capacity of 600,000 MT, 10 warehouses, 2 usines, 4 innovation centres, the iconic deZaan brand and its 2,150 plus customer franchise, and a marketing network across 16 countries.

The acquired business does not include assets under ADM's global chocolate business. Over 1,500 ADM Cocoa employees including 30 R&D professionals will join the combined cocoa entity as part of the transaction.

Olam's Co-Founder, Group MD and CEO, Sunny Verghese said: "With Cocoa being a prioritised platform for investment, this proposed acquisition represents a transformational opportunity for Olam Cocoa to become an integrated global leader in a market with attractive growth prospects."

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