NIGERIA – Olam International Limited, the multinational food and agribusiness company has completed the acquisition of Dangote Flour Mills (DFM) through its Nigerian subsidiary, Crown Flour Mills Limited for N120 billion (US$331m).
DFM will consequently be delisted from the Main Board of the Nigeria Stock Exchange, Olam said following the completed acquisition.
With the acquisition, Olam said it seeks to improve efficiencies in the company to ensure that the DFM is well positioned to tap into the growing milling and baking industry.
This doubles its production capacity by adding five flour mills that it already operates across Nigeria into Crown Mills operations, a deal that gives Olam economies of scale to operate in the sector.
The acquisition follows an unanimously endorsement of the buyout offer by shareholders of Dangote Flour Mills Plc.
DFM, Nigeria’s leading wheat milling company, had in April this year received a binding offer from Olam to acquire all outstanding and issued shares not currently owned by it.
When the acquisition was first announced Olam said it was part of its strategy to strengthen its portfolio and came after the company unveiled its six-year strategic plan to invest US$3.5 billion in several key business areas — including grains and animal feed — while divesting four businesses, part of the company’s 2019-24 plan.
The acquisition of DFM marks the third deal that Olam has closed in Nigeria as the global agribusiness company continues to cement its leadership position in Nigeria’s milling industry and execute its growth strategy in Africa.
In addition, Olam has secured a deal to acquire a 100% interest in leading Californian almond processor and ingredient manufacturer Hughson Nut Inc (HNI) for US$54 million expanding its almond ingredients business.
Owned by APB Partners, LLC (APB), Hughson Nut ranks among the top five almond processors in California.
Olam said that the extensive processing capabilities of HNI will enable the company to offer a fully integrated solution across the almond value chain from the US, including processed whole nuts and value-added ingredients.