Singapore-based global food and agri-business Olam International has acquired an 85% stake in YTS Holdings, which has a 100% stake in Indonesia’s cocoa processor PT Bumitangerang Mesindotama (BT Cocoa), for a consideration of $90m.

The remaining 15% stake in YTS Holdings will be held by the founding members of BT Cocoa, Piter Jasman and family.

Olam Cocoa CEO Gerard Manley said: “We are excited to have the opportunity to rapidly expand our footprint in Asia and to develop this business with the founder and family of BT Cocoa.

“Our longstanding relationship will enable us to deliver world-class cocoa ingredients and services to our expanded customer base and look to strengthen these relationships in the future in one of the fastest growing regions in the world.”

"The relationship with Olam Cocoa represents a powerful opportunity for BT Cocoa to significantly expand our market."

The deal is expected to provide new opportunities for Olam’s ingredients portfolio, such as value cocoa powder brand Huysman and premium brand deZaan.

Additionally, the deal will increase Olam’s bean processing capacity by 120,000mt and grow its cocoa mass pressing capacity by 30,000mt to meet the demand for cocoa powder products in Asia.

BT Cocoa supplies products to chocolate and confectionery manufacturers in the region.

Jasman said: “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 three 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.”

For nearly three years, the two companies have been working together through a Business Collaborative Agreement and Olam is said to have made considerable financial and operational improvements, including helping BT Cocoa achieve a 30% reduction in energy consumption.

In January 2019, Olam announced plans to divest four business segments in the next six years to generate $1.6bn in cash that will be reinvested to tap growth opportunities.