Olam International Ltd to acquire the UK’s Britannia Food Ingredients Holdings Ltd & Britannia Storage and Distribution Ltd

Singaporean firm Olam International Limited is to acquire 100% of equity interests in Britannia Food Ingredients Holdings Limited (BFI) and Britannia Storage and Distribution Limited. Olam International is a leading global, integrated supply chain manager and processor of agricultural products and food ingredients.  The investment will be undertaken for a combined transaction enterprise value of £33.5 million.

Under the terms of the investment, Olam will initially acquire 85% of equity capital in BFI and 100% of BSD, and then acquire the remaining 15% interest in BFI within the next three years at a pre-agreed valuation, read the firm’s press statement.

Based in Goole, Yorkshire England, BFI is one of the leading independent suppliers of specialty fats to the confectionery and snack food industries in the UK.  Their product categories include Cocoa Butter, Cocoa Butter Equivalents, Filling Fats, Reduced Saturate Frying Oils and Dairy Butter Oil. BFI is an accredited ingredient supplier to the leading confectionery and food majors with an operating history of 15 years. It is recognized for its brand of R&D, innovation, quality and service.

Olam will acquire BFI’s key assets and processing capabilities, which comprise melting plants, blending and refining facilities with a total capacity of 70,000 metric tons per annum. The plant also has warehousing, tank storage, modern packing, R&D and analytical laboratories. The BFI facilities are located on a 7- acre plot of land that provides significant scope for expansion.

In addition, BFI possesses significant expertise in developing innovative product formulations in conjunction with their customers, who have enabled them to build a strong brand and franchise in the industry.

BSD is a logistics service provider to the confectionery fats industry based in Goole and Ipswich. It manages warehousing facilities, tank storage and operates its own trucking services. This provides a vital link to ensure timely and cost competitive delivery of oils and fats from the ports of Felixstowe and Liverpool to BFI and other customers.

Gerry Manley, Olam’s Managing Director and Global Head for Cocoa, said the investment represents a further step towards integrating the firm’s business as a leading supplier of high quality cocoa ingredients and confectionery fats to the chocolate industry. Manley added that BFI offers Olam the ability to supply refined liquid deodorized cocoa butter and other specialty fats.

The acquisition of BFI signifies the continuous execution of Olam’s global cocoa strategy to integrate its supply chain into value-added midstream processing, including intermediate cocoa ingredients and serve the growing requirements of the global chocolate industry.

1 Feb 2011.