Flour Mills To Acquire 76.8% Stake In Honeywell At $193.7 Million 

Chinyere Ogbo

Flour Mills of Nigeria plans to acquire a 71.69 per cent stake in Honeywell Flour Mills at an enterprise value of N80 billion naira ($193.7 million), the companies said on Monday.

Flour Mills of Nigeria (FMN) Plc said it has already reached an agreement with Honeywell Group to acquire majority shareholding interest in Honeywell Flour Mills Plc (HFMP).

The FMN has also entered into an agreement with the FBN Holdings Group to acquire its 5.06 per cent equity in HFMP, a business combination that is subject to regulatory approval.

According to Flour Mills in a regulatory filing signed by Umolu Joseph, its Company Secretary and Director, Legal Services, is in line with FMN’s global growth strategy.

The company explained that “given FMN’s parallel negotiations for both stakes, culminating in the agreement being signed on the same date, the basis for arriving at key commercial terms, including final equity price per share, will be the same.

Omoboyede Olusanya, Group Managing Director, FMN, said: ‘The proposed transaction ts part of our global growth strategy; which is aligned with our vision to not only be an industry leader but also, a national champion for Nigeria in the food and agro-allied industries”.

Flour Mills of Nigeria is one of Nigeria’s leading food and agro-allied groups. FMN is devoted to feeding the nation while actively investing in attaining Nigeria’s food self-sufficiency goals.

Since 1960, through its iconic Golden Penny brand of flour, pasta, semolina, sugar, starch, oil, spreads and breakfast cereals, it has continued to build a diversified portfolio of accessible and wholesome food products, a robust Pan Nigerian distribution network and investments that enhance the lives of Nigerians.

The Group operates 17 modern manufacturing facilities across 12 states with production capabilities across grain milling, edible oil and sugar refining, agro-inputs and animal nutrition and proteins.

Honeywell Group is a conglomerate based in Nigeria. It operates in diversified businesses such as foods and agriculture, telecommunication and infrastructure, real estate and financial services.

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