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Business News of Thursday, 12 May 2022


Honeywell Group, Flour Mills highlight benefits of merger

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Honeywell Group plans to consolidate its investment portfolio and harness fully the benefit of the recent merger of its flour milling subsidiary with Flour Mills of Nigeria Plc.

Flour Mills had acquired 71.69 per cent stake in Honeywell Flour Mills at a total enterprise value of N80 billion.

Managing Director, Honeywell Group, Mr. Obafemi Otudeko, expressed optimism on the impact the merger will have on both companies, Nigeria’s fast moving consumer goods (FMCG) industry, and the economy.

According to him, the business combination would create a business that further serves consumers.
“As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure a seamless integration, setting the combined company up for a successful future,” Otudeko said.

Group Managing Director, Flour Mills of Nigeria (FMN) Plc, Boye Olusanya, said the business combination would positively impact Nigeria’s food security architecture and overall competitiveness.

He noted that both companies play a significant role in the consumer goods industry and with the merger, the combined company would naturally be an important source of food on the continent and further bolster the Nigerian government’s food security agenda.

Following the kickoff of the African Continental Free Trade Area (AfCFTA), the new company will help drive international trading activities in Nigeria, especially growing export value in the food production space.

Similarly, a variety of food consumables presents consumers with diverse options to choose from and places the firm well as a one-stop-shop for consumer delights, with combined capabilities geared towards driving production cost down and competitive pricing.

Honeywell Group, the investment company behind the transaction, has a track record in operating and investing in leading companies giving it an expansive understanding of the market, and what it takes to build successful and sustainable businesses that create financial and social value hand-in-hand.

Otudeko assured that Honeywell Group is poised to continue refining and growing its investment portfolio.

“We are strongly positioned to expand our activities in key growth sectors through strategic investments and partnerships. We remain committed to creating businesses that leave a lasting impact and look forward to sharing our future plans,” Otudeko said.