Olam acquires Nigerian biscuit firm for US$167m

Olam International Limited, a Singapore-based ingredients company, announced yesterday that it has acquired a leading Nigerian biscuits and candy maker through the acquisition of 100% equity interest in Titanium Holding Company SA and its subsidiaries for a price consideration of US$167 million (subject to working capital adjustments at completion).

Titanium Holding owns Nigeria’s second largest biscuits and candy franchise with a turnover of approximately US$162 million in 2011.

Started in 1995, the company today has achieved leading market shares of 18% and 28% in biscuits and sugar candy under the “OK” brand umbrella.

Both categories are enjoying market growth rates of 10-12% and 12-15% respectively, enabling the business to deliver a CAGR of 26% in revenues over the past five years.

The company owns and manages three biscuit and candy factories with modern production lines fitted with raw materials management and packaging systems, and a logistics infrastructure, which includes a fleet of trucks and other warehousing and distribution assets in Nigeria.

The company has over 1,700 employees, including a 60-strong management team in Nigeria, who will be part of Olam’s global employee strength post completion.