Flour Mills of Nigeria (FMN) Plc has announced an agreement it has reached with Honeywell Group to acquire its 71.69 per cent majority shareholding interest in Honeywell Flour Mills Plc (HFMP).
Furthermore, FMN has also entered into an agreement with the FBN Holdings Group to acquire its 5.06 per cent equity in HFMP.
The business combination is subject to regulatory approval.
Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold about 76.75 per cent equity interest in HFMP.
The transaction, according to Flour Mills in a regulatory filing signed by Umolu Joseph, its Company Secretary and Director, Legal Services, is in line with FMN’s global growth strategy.
The company explained that “given FMN’s parallel negotiations for both stakes, culminating in the agreement being signed on the same date, the basis for arriving at key commercial terms, including final equity price per share, will be the same.
Commenting on the transaction, Omoboyede Olusanya, Group Managing Director, FMN, said: “The proposed transaction ts part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the food and agro-allied industries”.
Flour Mills of Nigeria is one of Nigeria’s leading food and agro-allied groups. FMN is devoted to feeding the nation while actively investing in attaining Nigeria’s food self-sufficiency goals.
Since 1960, through its iconic Golden Penny brand of flour, pasta, semolina, sugar, starch, oil, spreads and breakfast cereals, it has continued to build a diversified portfolio of accessible and wholesome food products, a robust Pan Nigerian distribution network and investments that enhance the lives of Nigerians.
The Group operates 17 modern manufacturing facilities across 12 states with production capabilities across grain milling, edible oil and sugar refining, agro-inputs and animal nutrition and proteins.
Below is a statement released by the company;
“We are pleased to announce the proposed combination of Honeywell Flour Mills and Flour Mills of Nigeria and subject to regulatory approvals, this will combine businesses with shared goals, creating a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation.
We are excited for the proposed combination of two trusted and entrenched brands, creating a single entity that is better positioned to benefit the growing Nigerian population. We’re looking forward to the next chapter!”