Singapore-based Olam International Limited has acquired the coffee business unit of Spanish instant coffee maker Seda Solubles for $52 million (U.S.)
The deal was made through a court-managed bidding process in Spain. The key assets acquired consist of a manufacturing facility and a packaging facility in Spain, a storage and packaging facility in Russia and Seda’s coffee brands. The acquisition is part of Olam’s goal to grow its coffee business. The company is a supply chain manager and processor of numerous agricultural products and food ingredients
“Despite the financial situation surrounding Seda at the corporate level, the business has managed to retain its customer and operating franchise,” said Olam’s Senior Vice President of Coffee, Arun Sharma.
Olam plans to commit S$7 million in capital expenditures over the next two years for asset overhauls and maintenance to Seda facilities.