Olam acquires Nigerian biscuit and candy maker

Olam International, a Singapore-based agricultural commodities supplier, has acquired Nigerian biscuit and candy maker Titanium in a deal worth $167m as a part of its strategy to expand its packaged foods business in West Africa.

According to Olam, the Titanium’s brand equity, management bench strength and operating assets will complement its packaged foods business and enable it to move into a leadership position in the country.

Titanium, which holds a market share of 18% and 28% in biscuits and sugar candy segments respectively with its brand OK Foods, is Nigeria’s second largest biscuit and candy company.

Olam senior vice president and head of packaged foods M Ramanarayanan said: "We believe the combined capabilities of Olam and OK Foods will offer a differentiated approach to addressing the needs of the market by putting together the best practices in manufacturing, product development and innovation, branding and marketing, with deep local insight into the business."

The acquisition, which was funded through internal accruals and borrowings, is immediately accretive to Olam’s revenue, cash flow, and cash earnings.

The company owns three biscuit and candy plants, featuring production lines equipped with raw materials management and packaging systems and logistics infrastructure, which includes a fleet of trucks and other warehousing and distribution facilities in the country.

Through the acquisition, the Singapore-based company plans to use Titanium’s manufacturing infrastructure in Nigeria to set up a biscuits and candy export hub to cater to other West African markets.

Olam International functions in five segments, including confectionery and beverage ingredients, food staples and packaged foods, edible nuts, spices and beans, industrial raw materials, and commodity financial services.

In West Africa, Olam holds a leadership position in multiple consumer categories such as tomato paste, pasta, noodles and seasonings.