Flour Mills of Nigeria (FMN) Plc and Honeywell Flour Mills on Monday announced a merger and acquisition deal valued at N80 billion.
Honeywrll Group Limited, the parent company of Honeywell Four Mills, and FMN are undertaking the business merger.
At s value of N80 billion HGL agreed to dispose 71.69 per cent stake of its shares to FMN.
Exchange sources said final equity share pricr payable will be determined based on Honey Flour adjusted net debt and net working capital at the date of completion of the acquisition.
The complementary transaction pushes FMN as the market leader with offerings that includes grain-based foods, sugar, starches, oils, spreads and breakfast cereals with Honeywell Flour’s diverse range of products.
The companies said stakeholders would benefit from more than 85 year combined track record of both companies and their shared corporate goals of making nutritious food available to Nigeria’s population.
Addressi g the development, HGL Managing Director Obafemi Otudeko said: ” Today’s announcement is in line with the evolution of Honeywm Group and our vision of creating value that transcends generations.
” For over two years, we have supported Honeywell Flour Mills to build a virile business with our production capacity of 835,000 metric tonnes of food pet year.
” Following the transaction Honeywe Group will be strongly positioned to consolidate and expand it’s investment activities.
FMN Plc’s Group Managing Director Omoboyede Olusanya said the proposed transaction is in line with the company’s vision to be an industry leader and Nigeria’s number one food brand.
“We are of no doubt that this would create the right opportunity to combine the unique talents of the two businesses for the benefit of their consumers.
“We would evolve into a more robust business with comprehensive skill set to exploit our vast diversified food business and