Olam International Signs Asset Purchase Agreement to Acquire Assets of SK Foods

Success in the auction will further consolidate Olam’s presence in the Californian agriculture sector, by expanding the range of dehydrate products and services to its customers in the US and other export markets.

24/06/09 Olam International, a leading global integrated supply chain manager of agricultural products and food ingredients, announced that the Group has entered into an asset purchase agreement with Bradley D Sharp of Development Specialists Inc., who is the Chapter 11 Trustee of SK Foods L.P. and its wholly owned subsidiary RHM Industrial/Speciality Foods Inc. to purchase selected assets of SK Foods and RHM in California.

The sale of these assets is being managed through the Bankruptcy Court and is expected to go for a public auction on June 24, 2009. The results of the bidding are expected to be announced on June 25, 2009. Success in the auction will further consolidate Olam’s presence in the Californian agriculture sector, by expanding the range of dehydrate products and services to its customers in the US and other export markets.

The asset purchase agreement would give Olam the right to be a “stalking horse”. As a “stalking horse”, Olam will be entitled to a break-up fee and reimbursement of its due diligence expenses, if the Court approves the sale of the assets to another purchaser for a higher or better price.