BY BAMIDELE FAMOOFO
Flour Mills of Nigeria Plc, largest milling company in Nigeria, has concluded plans to take over the operations of HoneyWell Flour Mills by acquiring 76.65% of its equity.
The deal which is to be done in two tranches will empower FMN Plc to own majority stake in Honeywell and that will make its former competitor its subsidiary company.
FMN will acquire 71.69% equity directly from Honeywell Plc, according to information made available by the Nigerian Exchange Limited.
The board of directors of FMN Plc said it is in talks with First Bank Plc to also buy up 5.06% equity owned by Honeywell Plc in the bank.
Commenting on the transaction, Omoboyede Olusanya, Group Managing Director of FMN Plc disclosed that the proposed transaction is part of the group’s global growth strategy, which is aligned with its vision not to only be an industry leader, but also a national champion for Nigeria in the Food and Agro-allied industries.
Incorporated on September 29, 1960, as a limited liability company and pioneer wheat miller in Nigeria, FMN started out on a journey that has seen the company evolve into what is now one of the biggest brands in the foods and agro-allied industry in Africa.
Over the years, the FMN brand grew tremendously from operating as a single business, flour miller, to a vast business group with strategic investments that cover key sectors of the Nigerian economy.
The group’s operations can be categorised into four major sectors of Food, Sugar, Agro-allied, and Support services. Its foray into the Agric sector started in 1978, with the acquisition of a 10,000-hectare farm in Kaboji, Niger State as part of an investment and expansion strategy designed to create value in the supply chain and reduce the reliance on imported raw materials.
Since then, it has made substantial investments in the primary processing of locally grown soybean, palm fruit, cassava, maize, sugar cane, sorghum, and the storage, aggregation and distribution of locally sourced grains.
“At FMN, we are passionate about ‘feeding the nation.’ For over five decades, we have maintained a rich tradition of enhancing the quality of living for Nigerian families by producing a wholesome portfolio of food options – The company’s iconic food brand, ‘Golden Penny,’ is a household name that is trusted by many for good food and for daily nourishment,” Olusanya said.
