Kainos Capital To Sell Olde Thompson to Olam Food Ingredients

Rhea-AI Summary

Kainos Capital has agreed to sell its portfolio company, Olde Thompson, to Olam Food Ingredients for $950 million. Olde Thompson, headquartered in Oxnard, California, is the largest supplier of private label dry spices in North America. Previously acquired by Kainos in May 2018, the company recently expanded its product offerings after acquiring Gel Spice. The transaction is expected to complete in Q2 2021, benefiting Olde Thompson's stakeholders through enhanced resources and access to Olam's global sourcing capabilities.

Positive

• Transaction valued at $950 million indicates a strong exit for Kainos Capital.
• Olde Thompson's acquisition enhances its market position as the largest private label dry spices supplier in North America.
• The partnership with Olam boosts resources and opportunities for Olde Thompson, improving growth potential and ESG capabilities.

Negative

• None.

DALLAS, April 28, 2021 /PRNewswire/ -- Kainos Capital ("Kainos"), a food and consumer-focused private equity firm, today announced that it has agreed to sell its portfolio company Olde Thompson to Olam Food Ingredients, an operating group of Olam International (SGX: 032), a global food and agri-business, in a transaction valued at $950 million. Olde Thompson was acquired by Kainos in May 2018.

Headquartered in Oxnard, California, Olde Thompson is the largest dedicated manufacturer and supplier of private label dry spices and seasonings in North America. Last year Olde Thompson acquired Gel Spice, which further established it as a leader in the spice category.  The acquisition created a differentiated bi-coastal manufacturing footprint, unlocked additional channels, and expanded the company's product offering into pouches, extracts and single serve seasonings for meal kits and other applications.

The Kainos team has invested over $2 billion of equity in over 75 investments with a total value over $12 billion over the last 25 years. Kainos specializes in investing in family and founder owned businesses where it can be a value-added partner and instill a culture of operational excellence through its sales development, manufacturing, supply chain and administrative expertise.

Andrew Rosen, Managing Partner of Kainos, said, "Our investment in Olde Thompson was driven by our thesis in the growing importance of spices and flavorings as consumers seek bolder taste profiles.  After meeting Jeff Shumway, the founder of Olde Thompson, nearly a decade ago, we ultimately partnered in 2018 to pursue our shared vision to grow Olde Thompson into the largest dedicated private label provider of spices and seasonings. We accomplished this by investing in our manufacturing capabilities and customer development resources, and the acquisition of Gel Spice from the Engel family in 2020 helped accelerate this strategy and was instrumental in attracting the interest of a terrific strategic acquiror in Olam."

Jeff Shumway, Chairman of Olde Thompson, said, "Our family acquired Olde Thompson in 1966 when the company primarily sold pepper mills that remain a fixture in homes across the country. Over the years, with the help of our incredible employees, we transformed our company into one of the largest spice companies in the U.S.  A turning point in our history was when we partnered with Kainos and its operations team, enabling us to attract world-class talent to professionalize our management team and embark on a capacity expansion and automation plan to make us one of the most efficient spices producers in the industry.  We have had a relationship with Olam for more than 15 years, and this broader partnership as part of the Olam family represents an exciting new chapter for Olde Thompson."

David Sugarman, CEO of Olde Thompson, said, "The acquisition of Olde Thompson by Olam is a terrific outcome for all of our key stakeholders.  For our customers, this partnership pushes Olde Thompson to the forefront of ESG as it provides access to Olam's extraordinary international sourcing capabilities and spice expertise that will allow us to provide a new level of traceability and transparency to the marketplace. Our employees will benefit from additional resources and opportunities that will accelerate our growth even further."

Andrew Rosen concluded, "This transaction with Olam is a terrific outcome for Olde Thompson and the company's future has never been brighter."

Completion of the transaction is expected in Q2 2021.

Sawaya Partners LLC and Lazard served as financial advisors to Olde Thompson.  Weil, Gotshal & Manges LLP served as legal counsel to Olde Thompson.

About Kainos Capital
Kainos Capital is a middle market private equity firm with an exclusive focus on the food and consumer sector. The Kainos team has extensive investment and operating experience in the industry, having invested more than $2 billion of equity in more than 75 transactions with a total transaction value of more than $12 billion. The firm's strategy is to build a diversified portfolio of growing and strategically relevant food and consumer businesses that trade buyers would like to acquire. For more information, visit www.kainoscapital.com.

About Olam International
Olam is a leading food and agri-business supplying food, ingredients, feed and fibre to 17,300 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5 million farmers.

Through our purpose to 'Re-imagine Global Agriculture and Food Systems', Olam aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders.

Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalization on SGX-ST.

Since June 2020, Olam has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam's supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds.

To subscribe to the Olam Newsroom please visit www.olamgroup.com (privacy statement here). If you do not wish to receive information from Olam please contact media@olamnet.com

More information on Olam can be found at www.olamgroup.com. 
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Olam is located at 7 Straits View, Marina One East Tower #20-01, Singapore 018936.
Telephone: +65 63394100, Facsimile: +65 63399755.

About Olam Food Ingredients
Olam Food Ingredients (OFI) is a new operating group born out of Olam International Limited. OFI offers sustainable, natural, value-added food and beverage ingredients and solutions so that consumers can enjoy the healthy and indulgent products they love. It consists of Olam's industry-leading businesses of Cocoa, Coffee, Nuts, Spices and Dairy.

OFI has built a unique global value chain presence including its own farms, farm-gate origination and manufacturing facilities. OFI partners with customers, leveraging its complementary and differentiated portfolio of "on-trend" food and beverage products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that's traceable and sustainable.

Contact:
Jonathan Morgan
Kekst CNC
jonathan.morgan@kekstcnc.com
(212) 333-5525

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SOURCE Kainos Capital

FAQ

What was the value of the Olde Thompson sale to Olam Food Ingredients?

The sale of Olde Thompson to Olam Food Ingredients is valued at $950 million.

When is the completion date for the Olde Thompson acquisition?

The transaction is expected to complete in Q2 2021.

What significance does Olam's acquisition have for Olde Thompson?

The acquisition provides Olde Thompson with enhanced resources and access to Olam's global sourcing capabilities, improving its growth potential.

Who was involved in the sale of Olde Thompson?

Kainos Capital handled the sale, with Sawaya Partners LLC and Lazard serving as financial advisors to Olde Thompson.