Honeywell Group Limited, HGL, has signed an agreement to dispose of 71.69 per cent stake in Honeywell Flour Mills Plc to Flour Mills of Nigeria Plc., FMN.
The stake is at a total enterprise value of N80 billion.
The agreement was announced on Monday in a statement issued by Honeywell Flour Mills Plc.
The combination of the two companies, it was asserted, would 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 statement reads in part: “This morning, we announced the proposed combination of our company, Honeywell Flour Mills Plc, (HFMP) a portfolio company of HGL, and Flour Mills of Nigeria Plc.
“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”).”
Meanwhile, the Managing Director of HGL, Mr. Obafemi Otudeko, has declared that the new development will enable Honeywell Group to be strongly positioned to consolidate and expand its investment activities.
His words: “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.”
