Flour Mills of Nigeria (FMN) Plc and Honeywell Flour Mills have agreed to combine their businesses in a merger and acquisition deal valued at N80 billion.
Honeywell Group Limited (HGL), the parent company of Honeywell Flour Mills, and FMN, through its affiliates, are undertaking the business combination.
At a total enterprise value of N80 billion dispose off a 71.69 per cent stake in Honeywell Flours to FMN.
The final equity price per share payable will be determined based on Honeywell Flour’s adjusted net debt and net working capital at the date of completion.
The proposed combination is subject to approval from the appropriate regulators.
The complementary transaction combines FMN’s market-leading offerings that include grain-based foods, sugar, starches, oils, spreads and breakfast cereals with Honeywell Flour’s diverse and differentiated range of carbohydrate products.