Singapore's Olam to acquire UK's Britannia Food

Olam International today announced plans to acquire a 100 per cent stake in Britannia Food Ingredients Holdings (BFI) and Britannia Storage and Distribution (BSD) for a combined enterprise value of 33.5 million pounds (approximately $50 million).

Olam -- which is owned by Singapore-based Indian tycoon Sunny Verghese -- said it would initially acquire 85 per cent of the equity capital in BFI and 100 per cent of BSD and then acquire the remaining 15 per cent interest in BFI within the next three years at a pre-agreed valuation.

Established in 1996 in Goole, at Yorkshire, England, BFI is one of the leading independent suppliers of specialty fats to the confectionery and snack food industry in the UK.

BSD is a logistics service provider to the confectionery fats industry based in Goole and Ipswich.

Olam Managing Director and Global Head for Cocoa, Gerry Manley, commented: "This investment represents a further step toward integrating our business as a leading supplier of high quality cocoa ingredients and confectionery fats to the chocolate industry."

The acquisition would be funded through internal accruals, said Olam.