Singapore's Olam to buy U.S. spice firm ahead of food ingredients unit IPO

April 29 (Reuters) - Commodity trader Olam International Ltd said on Thursday its soon-to-be listed food ingredients business will buy U.S. spice company Olde Thompson for $950 million.

The Singapore-based trader plans to separate and list Olam Food Ingredients (OFI), which includes cocoa, coffee, and edible nuts, by the first half of next year as part of a wider restructuring that would see it split into two new operating businesses.

A decision on where to list the business will likely be made by the summer, Olam International Chief Executive Officer Sunny Verghese had said in February.

Olam's purchase of the 77-year-old U.S. private-label spice supplier from its management shareholders and Kainos Capital is expected to support earnings and margins from its first year in the OFI fold, potentially adding $25 million to $30 million towards core earnings.

"Growing our offerings of private label solutions is right at the heart of OFI's strategy," OFI Chief Executive Officer A. Shekhar said.

The deal, he added, would help bridge the gap between OFI's presence in production and supply to dealing with U.S. retail customers.

Olam International, majority-owned by Singapore state investor Temasek, is one of the biggest traders of agricultural commodities and operates across 60 countries. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Subhranshu Sahu)