Olam Shells Out $85m on Alabama-based Brooks Peanut Company

Founded in 1959, Brooks processes around 110,000 famer stock tons a year of peanuts but has a bigger capacity of 175,000.

 

The deal will mean that Olam can extend its peanut sourcing network into Alabama and Florida.

 

Olam's peanut business fits into its Edible Nuts division, a division which Olam has identified as a key growth area.

 

In 2014, Olam, which has been operating in the US peanut industry since 2007, acquired US peanut sheller McCleskey Mills.

 

President of Olam’s global peanut business, Anupam Jindel, said: “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. “

 

“Given our 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.”

 

Barrett Brooks, president of Brooks: “Olam has a significant global presence in the peanut industry and we are excited to be joining their team."

 

“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.”

 

Joe West, head of Olam’s US peanut shelling operations, said: “The acquisition will be earnings and talent accretive from the beginning. Brooks has a strong leadership team which will continue to manage the operations from Alabama and also help extract synergy value with our existing peanut business. “

 

“Our combined team will be able to offer highly differentiated products like hi-oleic, bar-ready peanuts to our discerning customers and also our high quality seed to Brooks’ growers, while capitalizing on the growth prospects in the industry.”