Flour Mills of Nigeria Plc (FMN) has completed the acquisition of a 71.69 per cent stake in Honeywell Flour Mills Plc (HFMP) and a 5.06 per cent stake in HFMP held by First Bank of Nigeria Limited after getting necessary approvals from regulators.
The acquisition was approved by the Federal Competition and Consumer Protection Commission, Nigerian Exchange Limited and the Securities and Exchange Commission (SEC).
FMN and Honeywell Group had on November 22, 2021, announced the proposed transaction, which would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry. Honeywell Group disposed of a 71.69 per cent stake in HFMP to FMN at an equity price of N4.20 per share.
This acquisition enables FMN to extend its reach across Nigeria, provide enhanced manufacturing capacity and create synergies to deliver improved products to consumers. At a total enterprise value of N80 billion, Honeywell Group disposed of a 71.69 per cent stake in HFMP to FMN.
“We are delighted that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness,” Group Managing Director, FMN, Boye Olusanya, said.
He further noted: “Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa. Together, Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the evolving needs of our consumers. The acquisition will further serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings, enabling our customers across the nation to seamlessly benefit from improved access to a wider product range and a robust pan-Nigerian distribution network.”
Honeywell’s Group Managing Director, Obafemi Otudeko, said the transaction “will create a business that further serves Nigerian consumers. As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure seamless integration, setting the combined company up for a successful future.”