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Flour Mill Nigeria Acquires Honeywell Flour Mill

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CEM REPORT | Flour Mills of Nigeria (FMN) has announced its acquisition of majority stake in Honeywell Flour Mills (HFM).

The information was contained in a release sent to the Nigeria Exchange Group, dated Friday, April 29, 2022, signed by Joseph Umolu, Flour Mill’s Company Secretary/Director of Legal Services,

The stake which sums to 76.75 percent will be acquired from two separate holders. HFM, 71.69 percent and 5.06 percent from First Bank.


The press release stated that the acquisition was closed at N4.20 being the final equity price per share.

Given FMN’s parallel negotiation for both stakes (in HFMP and First Bank), culminating in the agreements being executed, the transaction was concluded at N4.20 being the final equity price per share.”

The press release also stated that the acquisition has been approved by all relevant regulators, such as, the Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Exchange Limited (NGX), and the Securities and Exchange Commission of Nigeria (SEC).

FMN explained that the transaction will be done with two Special Purpose Vehicles (SPVs). The first will be an FMN subsidiary which will hold 60% of the acquired stake, while the rest will be held by Excelsior Shipping, one of FMN’s major shareholders.

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Furthermore, FMN added that the acquisition will be financed through cash and debt funding.

For FMN, management is working on a split of cash and debt funding, as it believes sole cash funding is not optimal.”

HMF is expected to remain as its own entity for now and after the acquisition is officially concluded. This deal is significant because the new singular entity will benefit from more than 85 years of combined history.

Boye Olusanya, Group Managing Director, FMN stated,

“We are delighted that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness. We commend and thank all regulatory and approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”

“Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa. Together, Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the evolving needs of our consumers. The acquisition will further serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings, enabling our customers across the nation to seamlessly benefit from improved access to a wider product range and a robust pan-Nigerian distribution network.”

The acquisition of the majority stake by FMN which was first announced last November, stating that 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.

This acquisition places FMN as a commanding monopolist of the flour market.

FMN and HFM are the two biggest manufacturers of wheat, semolina, baking flour amongst others.

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