SINGAPORE (Feb 26): Olam International, the global food and agri-business, is acquiring Indonesia’s largest cocoa processor, BT Cocoa.

Olam has acquired an 85% share of YTS Holdings for a consideration of US$90 million ($121.4 million). YTS is the 100% owner of PT Bumitangerang Mesindotama (BT Cocoa).

The remaining 15% of shares are to be held by the founding members of BT Cocoa, Piter Jasman and family.

The acquisition will add 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity to Olam Cocoa which is seeing increasing demand for cocoa products in Asia, especially cocoa powder.

The deal also brings together Olam Cocoa, a world leader in traceable cocoa sourcing and processing, with BT Cocoa, one of Asia’s leading cocoa processors.

The partnership will also strengthen Olam Cocoa’s brand portfolio offering by adding strong Indonesian national brand BT Cocoa and also enable the further development and growth of Olam Cocoa’s Huysman brand.

Piter Jasman, Commisioner of BT Cocoa, says: "The relationship with Olam Cocoa represents a powerful opportunity for BT Cocoa to significantly expand our market with enhancements to quality, safety and ethically responsible cocoa products. The past 3 years of collaboration has clearly demonstrated the potential for delivering better value. The combination of Olam Cocoa's expertise as the leading global supplier and processor of sustainable cocoa, with BT Cocoa’s strong local network, will provide our customers with increasing benefits.”

Shares in Olam closed 4 cents lower at $1.98 on Tuesday.