Flour Mills Acquires 71.69 Percent stake In Honeywell
Written by Broad Admin on November 22, 2021
Flour Mills of Nigeria (FMN) and Honeywell Group Limited (HGL) today announced, through a press release, that they have signed an agreement to which flour mills will acquire Honeywell Group’s portfolio company, Honeywell Flour Mills PLC (HFMP).
According to the press release, Honeywell Group Limited has agreed to sell a 71.69% stake in Honeywell Flour Mills to Flourmills of Nigeria. It stated, “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.” Enterprise Value includes the debt of the company. Honeywell Flour Mills currently has a market value of N29 billion
The press release also mentioned that the transaction will create a stronger company in the food industry. It stated, “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.”