NIGERIA – Promasidor, a food and beverage-products powerhouse headquartered in Nigeria is considering a sale for US$1.5 billion, according to Bloomberg sources.
The group has not publicly disclosed its intentions to be acquired, however, persons familiar with the situation made this known.
According to the reports, the company is working with an adviser to gauge interest from potential buyers.
The source further revealed that deliberations are in the early stages and Promasidor could decide against a sale if interest is muted.
Ajinomoto, a Japanese food and ingredients maker, holding a significant interest in the maker of Cowbell milk brand, has made no move to liquidate its stakes.
In 2016, Ajinomoto agreed to buy 33 percent of the company for US$532 million, valuing it at about US$1.6 billion, which was 16 times Promasidor’s earnings before interest, tax, depreciation and amortization at the time.
The sales speculations follow an analysis by Oxford Economics Africa revealing that rising worldwide food prices would impact Africa’s economies the hardest and may spark societal unrest if governments fail to soften the shock.
In addition, Moody’s Investors Service, the bond credit rating business of Moody’s Corporation, has said that due to the persistent global food and energy price shock, it forecasts increasing social and political risks in the Middle East and Africa over the next 18 months.
Founded in 1979, Promasidor manufactures a range of food and drink products i.e., powdered beverages, flavor seasonings, powdered milk, cereals, and other food products. Its brands include Cowbell powdered milk and Yumvita cereal.
The group manufactures and supplies processed foods in 36 countries throughout Africa.
Recently, it appointed Dr Brighton Ochieng as its new Managing Director in Kenya.
Dr Brighton joined the company from GlaxoSmithKline, where he was Supply Chain Lead and Site Director based in South Africa.
Prior to that, he was Site Director of the pharmaceutical and healthcare company in both Cape Town and Nairobi.
Dr Brighton also undertook a stint at Beiersdorf East Africa Ltd, where he was Head of Supply Chain and Procurement.
A strategic business leader with deep operating expertise, the new Promasidor Kenya boss, has a track record of proven success in ensuring efficient running of businesses.
He holds a Doctor of Philosophy (PhD) in Ongoing, Supply Chain and Procurement from University of Nairobi and Bachelors of Business Administration, Strategic Management from the Methodist University.