The transaction will create a strong National Champion for Nigeria to further enhance food security
Flour Mills of Nigeria Plc. (“FMN”) and Honeywell Group Limited (“HGL”) today announced that they have signed an agreement for the proposed combination of FMN through its affiliates and Honeywell Flour Mills Plc. (“HFMP”), a portfolio company of HGL. At a total enterprise value of NGN80 billion, HGL will dispose of a 71.69% stake in HFMP to FMN. The proposed transaction will combine two businesses with shared goals and create a more resilient national champion in the Nigerian foods industry, ensuring long-term job creation and preservation. A combination of FMN and HFMP will bring together two trusted and iconic brands, creating 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”).
The key highlights of the proposed transaction are as follows:
Commenting on the transaction, Honeywell Group Limited Managing Director, Obafemi Otudeko said: “Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations. For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum. Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”
Omoboyede Olusanya, Group Managing Director of Flour Mills of Nigeria, said: “The proposed transaction is aligned with our vision not only to be an industry leader but a national champion for Nigeria. We believe that this will create an opportunity to combine the unique talents of two robust businesses. As a result, we will have a better-rounded and more comprehensive skill set available to us as a combined diversified food business, thus enabling us to better serve our consumers, customers and other stakeholders, whilst providing employees with access to broader opportunities.”
The transaction is subject to regulatory approval.
About Flour Mills of Nigeria Plc.
Flour Mills of Nigeria is recognized as 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 today and in the future.
The group operates 17 modern and best in class manufacturing facilities across 12 states with production capabilities across grain milling, edible oil and sugar refining, agro inputs and animal nutrition and proteins. FMN’s logistics and distribution, packaging and port operation are also among Nigeria’s best in class.
About Honeywell Group Limited
Honeywell Group is a leading Nigerian investment holding company with investments across major sectors of the Nigerian economy: foods, real estate, energy, infrastructure, and financial services. The group is committed to creating value that transcends generations and prides itself on its track record of building and catalysing world-class companies, to become market leaders in their respective sectors.
About Honeywell Flour Mills Plc.
Honeywell Flour Mills is a leading food producer in Nigeria. Its propelling objective is to provide healthy, nutritious and affordable food products to feed Nigeria’s growing population. The company produces a variety of products that have become staples in Nigerian homes including flour, wheat meal, semolina, noodles, and pasta. With three factories in Lagos and Ogun states and a footprint across Nigeria, Honeywell Flour Mills is known for its high-quality standards and operational efficiency.
For more information, please, contact:
Flour Mills of Nigeria Plc
Honeywell Group Limited