Dive Brief:
- Olam International, an agribusiness powerhouse with holdings in 65 countries, will purchase Georgia-based peanut sheller McCleskey Mills for $176 million.
- The deal marks the second foray into the U.S. peanut market by Olam, which has extensive operations related to cocoa, cotton, rice, and cashews. The company bought Universal Blanchers back in 2007.
- News of the deal comes several weeks after Olam, which is controlled by Singapore's state investment company, was forced to disclose some of its M&A plans after shares rose unexpectedly and the Singapore stock market raised questions.
Dive Insight:
One interesting little tidbit in this deal is that McCleskey also gives Olam a bit of boost in its cotton operations. Some of the same folks who grow peanuts for McClesky also grow cotton. And McCleskey was founded back in 1929, as a cotton company.