Olam to sell real estate assets of California plant for $150m

Olam and Mesirow have entered into a tiered revenue sharing agreement for 25 years.

Olam International is selling the real estate assets of its Gilroy, California onion and garlic processing facility to investment management firm Mesirow Financial for $150m (US$110.3m), according to a bourse filing.

The two companies have also entered into a tiered revenue sharing agreement where they will share a part of the annual revenue for 25 years. The transaction will be completed next month.

Olam will receive a one-time pre-tax capital gain of around $132m (US$97m). The firm is also negotiating to divest and restructure various assets in line with its Strategic Plan, some of which may be concluded in this financial year.