Olusanya: Synergy-related Efficiencies Rationale Behind Flour Mills Acquisition of Honeywell
Kayode Tokede
The Group Managing Director, Flour Mills of Nigeria Plc (FMN), Mr. Boye Olusanya, has stated that synergy-related efficiencies are an important part of the rationale behind the acquisition of Honeywell Flour Mills Plc.
Olusanya who stated this during an interviewstressed that the acquisition is expected to create a long-term structural cost advantage needed to secure the prospects for both current and future employees.
FMN had obtained all requisite regulatory approvals to acquire a 71.69per cent stake in Honeywell Flour Mills Plc (HFMP), formerly a portfolio company of Honeywell Group and a 5.06per cent stake in HFMP held by First Bank of Nigeria Limited.
Given FMN’s parallel negotiation for both stakes, culminating in the agreements being executed, the transaction was concluded at N4.20 being the final equity price per share.
Olusanya said: “The acquisition would create a single more resilient national champion for Nigeria, ensuring long term job preservation and create additional opportunities across stakeholder groupings who would benefit from the more than (85) years combined track record of FMN and HFMP.”
He expressed the acquisition tends to increase scope to deliver product innovation to meet customers’ needs and customers across the nation are to benefit from access to a wider product range, economy of scale an even stronger stream of innovation and a robust Pan Nigerian distribution network and accessing greater number of points of sale supported by enhanced customer focused sales teams.
He noted that the acquisition of HFMP by FMN is expected to combine two businesses with shared goals and create a more resilient national champion for Nigeria in the foods industry, ensuring long-term job creation and food security.
According to him, “The acquisition will bring together two trusted and entrenched brands, creating a single entity that is better positioned to benefit the growing Nigerian population and leverage opportunities stemming from the African Continental Free Trade Area (AfCFTA).
“Continued investment in the business by the acquisition of HFMP will further enable FMN to be a crucial provider of the continent’s food needs.”
On the benefit to be derived from the AfCFTA, he envisaged that: “Nigeria presents vast opportunities given that it is the largest market on the continent. The AfCFTA provides an avenue to an additional market and will position FMN as a national champion. Continued investment in the business will enable FMN to be a crucial provider of the continent’s food needs.”
