Olam Food Ingredients is spicing up its spices portfolio with the acquisition of CPB, the chile pepper business of Mizkan Americas, for $108.5 million.
It’s the first major acquisition of Olam Food Ingredients, based in Singapore, after reorganizing to create its Olam Americas subsidiary, which will officially roll in the Deming, N.M.-based chile pepper producer for private brand, foodservice and retail.
Olam calls CPB a renowned producer of New Mexico green chiles as well as other specialty chile peppers. The move is to reflect Olam’s focus on providing on-trend food products that are sustainable and natural.
“Formerly known as Border Foods, CPB has been the leading chile pepper business in the U.S. for nearly 50 years, said Greg Estep, CEO of Olam Spices, the spice portfolio under Olam Americas. “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.”
Olam Spices is a leading supplier of dried garlic, onion and chile-based ingredients and a global provider of pepper, tropical spices, purees and parsley. With its facility in Las Cruces, N.M., it is the largest organic chile grower and processor in the United States, with full traceability from seed to delivery. It is one of Olam’s five leading food ingredient businesses, which along with cocoa, coffee, nuts and dairy, have come together under the Olam Food Ingredients banner to co-create category applications and solutions for its customers and their consumers.
Olam Americas will acquire CPB for a total consideration of $108.5 million, including an estimated net working capital of $55 million, subject to net working capital adjustment at closing, which will be completed January 2021.
“We are further pleased that in operating CPB, Mizkan shares the same focus on sustainable agriculture and quality control, maintaining close farmer relationships and fully integrated supply chains. This also allows Olam Spices to strengthen and expand our chile sourcing network — notably in Hatch Valley, N.M.,” said Estep. “With the CPB senior executive leadership at the helm, supported by an outstanding group of employees committed to excellence, we will continue to grow the business even further.”