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FMN gets approval to acquire 76% stake in Honeywell

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Flour Mills of Nigeria Plc (FMN) has obtained the required regulatory approvals to acquire 71.69 per cent stake in Honeywell Flour Mills Plc (HFMP), formerly a portfolio company of Honeywell Group.

The company made this known in a statement by its Corporate Communications Officer, Mrs Modupe Thani, on Saturday.

The company also acquired a 5.06 per cent stake in HFMP held by First Bank of Nigeria Limited.

According to Thani, the transaction, which has now been consummated by the parties, is aimed as creating a strong national champion for the food industry in Nigeria.

The acquisition has been approved by all relevant regulators, including the Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Exchange Limited (NGX), and the Securities and Exchange Commission of Nigeria (SEC).

“An announcement was made on Nov. 22, 2021, regarding their agreement to the transaction which would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian food industry.

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

“At a total enterprise value of N80 billion, Honeywell Group disposed a 71.69 per cent stake in HFMP to FMN.

“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,” the company revealed.

It added that Mr Boye Olusanya, Group Managing Director, FMN, expressed delight that approvals had been received, and that the company was ready for execution.

He said the landmark transaction would strengthen Nigeria’s food security architecture and overall competitiveness.

“Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa and  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.

“Nigeria, and Africa as a whole, will benefit from the group’s renewed focus on developing agricultural value Chains and backward integration imperative.

“This focus is further heightened by unfolding global events, and we are responding, among other initiatives, with the set-up of regional expansion platforms, ultimately geared towards improving food security and employment opportunities across Nigeria,” the statement quoted him as saying.

Honeywell’s Group Managing Director, Mr Obafemi Otudeko, was also quoted as saying that the deal struck would create a business that would serve Nigerian consumers better.

“As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure a seamless integration, setting the combined company up for a successful future.

“We thank the NGX, FCCPC, and the SEC for their support, and will continue our close collaboration with them across our various businesses and investments to deliver on the national vision of building a resilient economy through successful enterprise,” he said.

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