Establishes Olam as one of the top 3 worldwide cocoa processors as well as the
deZaan® ,Joanes® and UNICAO® brands adding on top a strong franchise of 2150 customers globally.The expected synergies from the economies of scale is about US$35m-US$40m.
The transaction is expected to be earnings, returns and free cash flow accretive in the first full year closing (FY2016). It is also expected to have a substantial financial impact going forward with segmental EBITDA growth of between 86%-95%, overall company EBITDA growth of between 20%-22% and Net Income and EPS growth of between 25%-30% by FY2018 compared to FY2014.
The purchase consideration of US$1.3 billion will be financed through a combination of cash and existing debt facilities.