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Bond Market News

Olam Buys Spice Company Olde Thompson for ~$1bn

Singapore-based Olam International bought US spice company Olde Thompson for $950mn including the latter’s debt from PE group Kainos Capital as it seeks to list its food ingredient business, Olam Food Ingredients (OFI). Olam is aiming for a listing in 2022 to boost growth as consumer interest in health, taste and sustainability rises. London, Amsterdam and Zurich are among the exchanges that Olam is considering. “Europe has three or four options which have the size and liquidity,” said Shekhar, chief executive of OFI. OFI is amongst the biggest suppliers of cocoa beans, garlic, instant coffee and cashew nuts worldwide. The chief executive added that Olam is seeking a main market listing to appeal to a wider range of investors such as index tracking funds. The company is expected to make a final call within the next couple of months, as it is currently evaluating the main exchanges.
The agricultural trading house divided the business last year and focused the other part on agricultural commodities such as oilseeds and grains. Shekhar commented that Olam completely “carved out” and by January will have separated OFI, adding that the demerger will “most likely” occur in Q2 2022. OFI is also seeking to raise capital to “back growth over the next three to five years”, Shekhar added. Credit Suisse and Rothschild are advising OFI on the demerger. However, with the disruptions and distress to the supply chains as agricultural commodity prices rise and the impact of the Suez Canal blockage, Shekar predicts that container availability issues will unlikely be resolved before the third quarter of this year.
Olam´s USD Perps were stable, its 5.35% 2049s at 100.463, yielding 3.13%.
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