Flour Mills of Nigeria bags Honeywell Flour Mills’ majority stake after raft of regulatory approvals

NIGERIA – Nigeria’s leading integrated Food and Agro-allied group, Flour Mills of Nigeria Plc, has obtained all requisite regulatory approvals to acquire a majority stake of 71.69% in industry peer Honeywell Flour Mills Plc (HFMP).

According to the food giant, the acquisition has been approved by all relevant regulators, namely the Federal Competition and Consumer Protection Commission (FCCPC); Nigerian Exchange Limited (NGX); and the Securities and Exchange Commission of Nigeria (SEC).

The deal was first announced in November 2021, where HFMP’s parent company Honeywell Group Limited agreed to dispose 71.69% stake in the wheat milling outfit to FMN based on an enterprise value of N80 billion (US$193m).

Other than Honeywell Group, First Bank of Nigeria Limited held 5.06% stake in HFMP and has also approved of the transaction tagged at a total enterprise value of 80 billion naira.

Given FMN’s parallel negotiation for both stakes, culminating in the agreements being executed, the transaction was concluded at N4.20 being the final equity price per share.

Mr. Boye Olusanya, Group Managing Director, FMN stated, “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.

“We commend and thank all regulatory and approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”

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The deal has combined HFMP’s wide range of offerings: wheat flour, noodles, semolina, pasta and wheat meal sold under the famous Honeywell brand with FMN’s market-leading offerings produced through its affiliates comprising: grain-based foods, sugar, starches, oils, spreads and breakfast cereals sold under the house-hold name Golden Penny.

This acquisition enables FMN to extend its reach across Nigeria, provide enhanced manufacturing capacity and create synergies to deliver improved products to consumers.

It would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry.

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The combination will also serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings.

“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,” said Mr Boye.

By bring together the two trusted and iconic brands, this will create a food business that is better positioned to benefit the growing Nigerian population and leverage opportunities stemming from the African Continental Free Trade Area (AfCFTA).

Stakeholders would benefit from the more than 85-year combined track record of FMN and HFMP and their shared goal of making affordable and nutritious food available to Nigeria’s population.

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