Olam Expands Peanut Shelling Presence in US with AcquisitionOlam Expands Peanut Shelling Presence in US with Acquisition

Olam International Ltd is expanding its peanut shelling presence in the United States with the acquisition of 100% interest in Brooks Peanut Company, the Singapore-based international agricultural conglomerate announced Thursday. The transaction was valued at $85 million.

The sixth largest peanut sheller in the US, and the biggest in the state of Alabama, Brooks processes 110,000 farmer stock tons (FST) of peanuts annually. The company, founded in 1959, is based in Samson, AL.

“We are pleased to have the opportunity to acquire Brooks’ procurement and processing capabilities, which complement our footprint in the US and significantly strengthen our network and product offerings to our customers and growers,” said the president of Olam’s global peanut business, Anupam Jindel, in a statement. “Given the strengths in the US peanut industry and global marketing reach, we feel quite confident that we will be able to take Brooks to its full potential fairly quickly.”

In December 2014, Olam bought American peanut sheller McCleskey Mills Inc. The latest acquisition of Brooks makes Olam the third largest peanut sheller in the United States, according to the company. The Brooks buyout was financed by a combination of internal accruals and existing debt facilities.

“Olam has a significant global presence in the peanut industry and we are exited to be joining their team,” said Brooks’ president Barrett Brooks in the Olam press release. “I believe the combination of our modern processing assets and strong procurement franchise with Olam’s expertise in peanut processing, marketing, and risk management will be a very successful one.”

The Singapore-headquartered conglomerate has operated in the US peanut industry since 2007, when it bought out Universal Blanchers LLC.