FLOUR Mills of Nigeria Plc is set to acquire 71.69 per cent of Honeywell Flour Mills Plc for N80 billion.
Disclosing this in a press statement on Monday, Honeywell Group Limited said it had agreed to sell 71.69 per cent of Honeywell Flour Mills Plc to Flour Mills of Nigeria, one of its major competitors.
With this development, Flour Mills will have the highest flour milling capacity in Nigeria and one of the highest in Africa.
However, regulatory authorities have to approve the transaction before it could be sealed. Honeywell Group, the parent company of Honeywell Flour Mills Plc, said in the statement that “At a total enterprise value of N80 billion, HGL will dispose of a 71.69 per cent stake in HFMP to FMN.”
The statement added “The proposed transaction will combine two businesses with shared goals and create a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation.”
While commenting on the transaction, Honeywell Group Limited Managing Director, Obafemi Otudeko, said “Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations.
“For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum. Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”
Omoboyede Olusanya, Group Managing Director of Flour Mills of Nigeria, noted that “The proposed transaction is aligned with our vision not only to be an industry leader but a national champion for Nigeria.
“We believe that this will create an opportunity to combine the unique talents of two robust businesses. As a result, we will have a better-rounded and more comprehensive skill set available to us as a combined diversified food business, thus enabling us to better serve our consumers, customers and other stakeholders, whilst providing employees with access to broader opportunities.”
Established in 1983, Honeywell Flour Mills Plc is a flour milling company that manufactures and markets wheat-based products, including flour, semolina, noodles and macaroni.
Over the years, Flour Mills of Nigeria has evolved from a flour mill to a vertically integrated supply chain of food, agro-allied and logistics and support businesses.
Source: tribuneonlineng