Olam

Olam: Co. continues to defies Muddy Waters Allegations, with the grp annoucing its latest acquisition. Grp has acquired a 100% equity interest in Dehydro Foods, a leading processor of dehydrated onions and herbs in Egypt, for US$30.8m including an estimated amount of US$3.5m for net working capital. Dehydro is the largest exporter of dehydrated onions from Egypt. Dehydrated onions account for about 85% of its annual rev with the balance 15% from processed herbs and specialty vegetable oils. Dehydro operates two facilities located just outside Cairo with current annual capacity of 8,500 mt in dehydrated onions and 2,300mt in herbs in finished form. The investment is expected to be immediately earnings accretive to Olam. Olam expects growth to come from sales through its existing customer network, in addition to sales growth from Dehydro’s customers in the Middle East and Europe. Overall, the investment is expected to deliver 28% in EBITDA margin and 45% in Equity IRR at steady-state.