Olam Americas, Inc., a subsidiary of Olam International Ltd., has agreed to acquire the US-based chile pepper business (CPB) of Mizkan America, Inc. for $108.5 million.
Mizkan’s chile pepper business includes New Mexico green chiles as well as other specialty chile peppers; these are sold to manufacturing, retail, private label and foodservice customers.
This deal marks the first major acquisition for Olam Food Ingredients, which is the new operating group created earlier this year after the reorganization within Olam International Ltd. According to an Olam spokesperson, the acquisition is in line with its strategy to provide customers with on-trend food products and sustainable, natural, value-added ingredients and solutions.
Greg Estep, chief executive officer of Olam Spices: “Formerly known as Border Foods, CPB has been the leading chile pepper business in the US for nearly 50 years. Combining CPB’s specialty and green chile range with our red chile portfolio (which includes paprika, chile powder and chile pepper) means we can deliver a wider range of ingredient solutions for customers looking to satisfy the rising demand for authentic Mexican flavors — already the third most popular cuisine in the country.