Mesirow Financial buys Olam’s US onion and garlic real estate assets for US$110.3M


Olam West Coast, a subsidiary of Olam International, has agreed to sell the real estate assets of its onion and garlic processing facility in Gilroy, California to Mesirow Financial, a Chicago-based investment management firm, for US$110.3 million. Olam has also entered into a tiered revenue sharing arrangement with Mesirow with whom it will share a part of the annual revenue from operating the assets for a period of 25 years.

The Mesirow team was led by Garry Cohen, senior managing director, sale-leaseback capital division, Mesirow Financial, who stated: “We are very excited about the prospect of closing this transformative acquisition with Olam on one of its most strategic assts in the US. Due to the degree of cooperation between both sides to get to this point, we expect this to be the first of many transactions together forming a long-term relationship.”

The transaction is expected to be completed in December 2019. On completion, Olam will receive cash proceeds of $110.3 million, and is also expected to book a one-time pre-tax capital gain of approximately $97 million.

Greg Estep, managing director and CEO of spices, Olam, concluded: “Mesirow has been a long-term partner of many large corporations in real estate transactions so I am confident our partnership will go a long way towards creating value for our respective stakeholders. I am excited about our next phase of growth as we can now redeploy part of the capital released for investments in product innovation and value-added services to create further value for our customers.”