Singapore-based Olam International Limited, a leading global, integrated supply chain manager and processor of agricultural products and food ingredients said February 9, 2012 it has acquired a leading Nigerian biscuits and candy maker – OK Foods through the acquisition of a 100% equity interest in Titanium Holding Company SA and its subsidiaries for a price consideration of $167 million.
“This acquisition presents a unique opportunity for our Packaged Foods business to scale up and move immediately into a leadership position in two attractive packaged foods categories in the largest consumer market in West Africa,” said Olam’s Senior Vice President and Head of Packaged Foods, M Ramanarayanan in a statement.
Titanium Holding owns Nigeria’s second largest biscuits and candy franchise under the “OK” brand umbrella with a turnover of approximately $162 million in 2011.
“We believe the combined capabilities of Olam and OK Foods will offer a differentiated approach to addressing the needs of the market by putting together the best practices in manufacturing, product development and innovation, branding and marketing, with deep local insight into the business,” Ramanarayanan added.
The company expects to leverage its manufacturing infrastructure in Nigeria to establish a biscuits and candy “export hub into other West African markets” to achieve greater economies of scale.
By Ekow Quandzie