OlamCocoa expects $200m earnings by 2018 after closing ADM Cocoa deal
The newly created OlamCocoa has 12 plants with a combined capacity of 700,000 metric tons (MT) per year, including facilities in origin countries such as Ghana, Côte d’Ivoire, Nigeria and Brazil. The deal increases Olam's existing capacity of 100,000 MT sixfold.
Olam now accounts for around 16% of cocoa processing globally, behind Cargill and the leading grinder Barry Callebaut, according to figures from Euromonitor International.
Olam’s co-founder, group managing director and CEO, Sunny Verghese said the $1.2bn acquisition helped the firm’s strengthen in one of its prioritized business platforms.
Around 1,500 employees have joined Olam, taking numbers in its cocoa business to 2,400.
Olam’s existing cocoa powder, butter and liquor brands Macao and Britannia are joined by former ADM brands deZaan, West African origin brand Unicao and Latin American brand Joanes.
The company said in its release that the acquisition allowed it to scale up farmer development programs, helping progress towards a goal of 100% sustainably sourced cocoa by 2020.
ADM finalized a $440m deal to sell its global chocolate business to Cargill earlier this year. Cargill has agreed to divest a plant in Mannheim, Germany to finalize the deal after competition concerns.
