NIGERIA – Nigerian dairy processor FrieslandCampina WAMCO has finalized the acquisition of Nutricima’s dairy business from PZ Cussons Nigeria Plc for an undisclosed sum.
The final purchase comes months after FrieslandCampina WAMCO and PZ Cussons signed an agreement regarding the acquisition in March.
The acquisition according to FrieslandCampina WAMCO underlines with its continued commitment to contribute to the development of the Nigerian dairy sector which has an estimated consumption capacity of 1.3 billion tons of milk annually.
“FrieslandCampina WAMCO has been a key player in Nigeria since 1954. With this acquisition, we demonstrate our strong commitment to Nigeria and its dairy market.”Roel van Neerbos – President of FrieslandCampina Consumer Dairy
It will provide it with additional production capacity to meet the growing demand for locally produced evaporated milk and powder milk.
“FrieslandCampina WAMCO has been a key player in Nigeria since 1954. With this acquisition, we demonstrate our strong commitment to Nigeria and its dairy market,” Said Roel van Neerbos, President of FrieslandCampina Consumer Dairy.
Nutricima Limited was founded in Nigeria in 2005 and has earned itself consumer awareness within the dairy industry since then.
FrieslandCampina WAMCO has acquired the Company’s production facility in Ikorodu, Lagos State and the brands Olympic, Coast and Nunu, a range of powdered, evaporated and ready to drink milk products.
These brands have a good presence across the Nigerian dairy market.
Ben Langat, Managing Director of FrieslandCampina WAMCO Nigeria said, “It is our mission to bring affordable and attainable quality dairy products to all Nigerians and meet the growing demand. That’s why we are pleased with this acquisition.”
Over the last few years, FrieslandCampina WAMCO has invested significantly in capital expenditure, including a new warehouse and a world-class Learning Academy to build capabilities across functions and to drive talent development.
Recently, the subsidiary of Holland’s Royal FrieslandCampina, commissioned a state-of-the-art plant for local production of Peak Yoghurt, which is directly linked to its highly successful dairy development programme.
The program which is at the center of Nigeria’s backward integration in local milk sourcing has made huge strides in the dairy industry, recording an increase in fresh milk collection from farmers to hit an all-time high record of 40,000 litres of milk per day.
FrieslandCampina WAMCO states that it will continue to expand its portfolio, particularly through low unit price packs and by strengthening its distribution reach in the market.
Having fulfilled all requirements including requisite shareholders and regulatory approvals, FrieslandCampina WAMCO has commenced operations at the newly acquired plant.
Also the shareholders of PZ Cussons have unanimously approved the resolutions authorizing their Directors to, on behalf of the company, execute the sale and transfer of a portion of land at its Ikorodu Industrial Estate to FrieslandCampina Wamco.
The land in question is where Nutricima factory carries out its operations.
PZ Cussons Chairman, Chief Kola Jamodu, briefed the shareholders of the benefits derivable from the sale of the immovable assets which includes: increase in the retained earnings of the company by unlocking value in the company’s real property assets, reports Guardian Nigeria.
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