Olam International, one of Gilroy’s largest private employers, sold its onion and garlic processing facility on Pacheco Pass Highway at the end of December for $110.3 million.
The Singapore-based agri-business giant announced the sale to Chicago-based investment management firm Mesirow Financial in a Nov. 26 press release.
Olam International’s Gilroy facility spans nearly 922,000 square feet, with about 500 employees, making it one of the top employers in the city.
As part of the deal, Olam entered into a revenue-sharing agreement with Mesirow for the next 25 years, but offered no details about how the Gilroy operations might change in the future.
Olam Spices marketing manager Tiffany Silveira said there will be no change in management and operations as a result of the sale. She added that Olam signed a 25-year lease with renewal options.
“We plan to be there a long time,” she said.
“We are pleased to have secured a long-term, tiered revenue-sharing agreement with Mesirow Financial for operating the onion and garlic assets for our US Spices business,” Olam’s Managing Director and CEO of Spices Greg Estep stated in a press release. “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.”
The move is part of a company-wide restructuring of its various assets, according to Olam.
Olam International operates more than 170 processing and manufacturing facilities across the world. It specializes in products such as nuts, spices, rice and other foods.
Other business news: Nimble Thimble
Quilt shop Nimble Thimble will hold its Inaugural Gilroy Quilt Auction at 4 pm Jan. 26 at Capos Restaurant, 7588 Monterey St.
The shop has received donations from several of the area’s well-known quilters and several vintage pieces, in addition to quilts made by local volunteers.
The event features a buffet dinner, live auction of 50 quilts, raffle, a cash bar and door prizes.
Proceeds support St. Joseph’s Family Center, which provides food, housing and employment services for the homeless.
Tickets are $30. For information, call 408.842.6501.
Send business news to Erik Chalhoub at [email protected].