Olam International acquires VKL spice business

Singapore-based supplier of agri and food commodities Olam International has acquired the bulk spices and private label assets and businesses of Vallabhdas Kanji (VKL), an India-based processor of spice and spice ingredients, in a deal worth $18m.

With the acquisition Olam International gains control of VKL’s spice processing plant in India, a pepper grinding facility in Vietnam and its capsicum production, and sales and distribution operations in North America.

Olam’s president and global head for spices and vegetable ingredients Greg Estep said the acquisition gives the company an opportunity to accelerate its entry into new, attractive product segments, namely chilli and turmeric, as well as into the private label segment of the value chain.

VKL processes and offers a line-up of processed spices and blends, customised for industrial customers, and also manufactures retail packs of spices, spice blends and seasonings for the US and European markets.