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Olam Food Ingredients announces acquisition of Club Coffee L.P.
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Wednesday, 27 April, 2022, 12 : 00 PM [IST]
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London
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Olam Food Ingredients (OFI), a global leader in naturally good food & beverage ingredients, has announced the acquisition of Club Coffee L.P., one of Canada’s largest roasters of packaged coffee to the ‘At Home’ segment. The transaction is expected to complete in Q2 2022, subject to regulatory approval and other conditions.
The acquisition of Club Coffee is aligned with OFI’s growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix, to customers across the globe. The private label and co-manufactured channel is an attractive, high value and growing part of OFI’s portfolio.
Club Coffee is one of Canada’s largest coffee roasters and packaging solutions providers to the ‘At Home’ segment, serving private label customers and retail brands from its facilities in Toronto. Operating since 1906 with a commitment to quality, sustainability and innovation, Club Coffee enjoys long-standing relationships with its blue-chip customer base who value its expertise in blending, roasting, manufacturing and sustainable packaging innovations for packaged coffees.
OFI MD & CEO Coffee Vivek Verma said: “I am delighted that Club Coffee will soon become part of OFI. Both companies share a focus on high quality sustainable products and have proven capabilities in contract manufacturing and in the high growth private label channel. Increasing our range of private label solutions is right at the heart of OFI’s growth strategy. Combining Club Coffee’s expertise with OFI’s sustainable sourcing, we can use our sustainability insights platform AtSource to deliver product traceability to our customers, as well as giving them the ability to influence the wider economic, social and environmental impacts of our products and their supply chains.”
Club Coffee CEO John Pigott commented:“The OFI acquisition of Club Coffee is great news for our customers, employees and all other stakeholders. OFI 's sustainable green coffee supply chain business complements Club Coffee’s innovative and sustainable packaging platform. Together, we now have the capacity and resources to accelerate new comprehensive value-added solutions with the aim of benefitting our customers. We believe we are well-positioned to meet the increasing consumer demand for sustainability and innovation.”
OFI will acquire Club Coffee at an enterprise value of CA$ 150 million, subject to working capital adjustments on closing. The consideration was arrived at on a willing buyer, willing seller basis, taking into account the business performance and prospects of Club Coffee, and the capabilities and synergies between OFI and Club Coffee. The acquisition will be funded from existing cash and debt facilities. Excluding acquisition-related costs and charges, the acquisition is expected to be accretive to current year earnings.
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