International food and ingredients company Ofi has announced it is acquiring 116-year-old Canadian coffee roasting and packaging company Club Coffee for CA$150 million (approximately $117 million USD).
Ofi (which originally stood for “Olam Food Ingredients” and is currently styled “ofi” by the company) is the operating group that was spun off of agri-business giant Olam Group last year with the intention to pursue IPOs on the London and Singapore stock exchanges this year.
With operations in numerous agriculture and food sectors, Ofi is the umbrella organization that also covers the international Olam Coffee business and the United States-based Olam Specialty Coffee business. (Disclosure: Olam Specialty Coffee is a current DCN advertiser.)
Ofi’s acquisition of Toronto, Ontario-based Club Coffee will be paid for with existing cash and debt facilities. The acquisition is expected to significantly expand Ofi’s reach in the North American coffee market, where Club Coffee already operates two Toronto manufacturing facilities that serve more than 600 private-label clients and support more than 120 products offered under numerous Club Coffee brands.
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According to Club Coffee, approximately 30% of its sales revenue comes from customers in the United States.
Club Coffee is also the creator and owner of the PurPod100, a plant-based single-serve, single-use, Keurig-compatible coffee pod that has achieved Biodegradable Products Institute (BPI) certification for both the United States in Canada. The pods require approved municipal or commercial composting facilities for composting.
In an announcement of the acquisition, Ofi Managing Director and CEO Vivek Verma said the company plans to integrate its existing coffee sourcing programs with Club Coffee’s production formats for private-label and at-home customers.
“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,” Verma said. “Increasing our range of private label solutions is right at the heart of ofi’s growth strategy.”
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