SINGAPORE’S AGRO-BUSINESS COMPANY SET TO ACQUIRE DANGOTE FLOUR MILLS
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Reports say Singapore’s food and agri-business company, Olam International has submitted a binding offer to acquire 100% equity ownership of Dangote Flour Mills Plc (DFM), a leading flour and pasta manufacturer in Nigeria, for an enterprise value of NGN 130 billion (approximately US$ 361 million) on a debt free, cash free basis.
According to reports, the proposed transaction would include DFM’s five strategically located facilities engaged in flour and pasta manufacturing, as well as its logistics capabilities including access to the ports of Apapa and Calabar. This acquisition is part of Olam’s strategy to strengthen its portfolio by investing in proven businesses where it has consistently performed and gained market leading positions.
Managing Director and CEO of Olam Grains and Animal Feed, K. C. subway said, “The acquisition of DFM supports the strategy of the grain and animal feed business, one of Olam’s prioritised platforms for growth, to expand our wheat milling capacity in high-growth markets, such as Nigeria”.
“We are confident about the growth prospects in this country and this acquisition, doubling our installed capacity here, is evidence of our long-term commitment to the Nigerian economy. Since 2010, when we first acquired Crown Flour Mills in Nigeria, Olam has invested in and grown a world class wheat milling franchise with a strong regional footprint across four countries in Sub-Saharan Africa. Bringing together Olam and DFM would provide enhanced manufacturing capacity and create synergies with our existing business to deliver improved products to meet customers’ needs in the market,” he added.
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