SINGAPORE — Olam International Ltd. said it has signed an agreement to acquire Hughson Nut Inc. from APB Partners, L.L.C. for $54 million. Headquartered in Hughson, Calif., Hughson Nut is an almond processor and ingredient manufacturer.
Olam said the transaction is consistent with its strategic plan to offer differentiated solutions and to target new customer segments in co-manufacturing, food service and e-commerce.
“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, Olam’s managing director and chief executive officer of edible nuts. “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.
“Combining H.N.I.’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.”
Hughson Nut is one of the five largest almond processors in California. The company owns and operates two facilities in Hughson and one in Livingston, Calif.
Once the transaction is finalized, Hughson Nut’s senior executive leadership team and its 400 employees will continue to manage the existing operations and grow the ingredients business while leveraging and benefiting from the synergies and capabilities of the combined business. The grower-family vendors also will continue to supply Hughson Nut with almonds for processing, Olam said.