Dufil Prima Foods acquires May&Baker’s noodles factory in N775m deal
Following the acquisition of Dangote Noodles Limited’s plants last year, Dufil Prima Foods Plc, makers of Indomie Instant Noodles, has consolidated its position in the industry with another three noodles production lines acquired from May & Baker Nigeria PLC(“M&B”) under a N775Million deal.
According to the Financial Adviser/Solicitor of Dufil Prima Foods, Nnenna Ejekam in a statement, the deal comes after the acquisition was completed following receipt of approvals from the respective Boards of Directors and shareholders of Dufil Prima Foods Plc and M&B, and the Securities and Exchange Commission (SEC).
She revealed that the deal was worth N775Million and automatically gives Dufil the ownership of M&B’s Noodles Factory in Ota, along with the equipment; and the trademark of Mimee Instant Noodles.
The Chief Operating Officer of Dufil Prima Foods, Girish Sharma, confirmed the deal and described the acquisition of Mimee Noodles as strategic as they continue to seek more dominance of the noodles market.
“We are pleased to announce this transaction, which delivers immediate value to our current shareholders and reflects the successful alignment, partnership, and commitment of our board, employees and suppliers,” Girish said.
Sharma had at an earlier meeting stated that the company has diversified its offerings and embarking on an expansion drive that would see the company investing additional N20 billion in Nigeria after its initial N10 billion initial investment.
According to the latest report by World Instant Noodles Association (WINA), Nigeria consumes over 2,540 million servings of the product, the highest in Africa.
Africa provides the next growth market for pasta and instant noodles, driven by a growing population, cost and convenience. The growth of pasta and noodles in most African countries is still relatively in the infancy stage.
The firm believes that the acquisition will consolidate and strengthen Indomie’s position as a market leader in the Instant Noodles segment and ratify its position as the number one noodles brand in Nigeria.
Dufil Prima Foods had last year, acquired plants of Dangote Noodles Limited, a subsidiary of Dangote Flour Mills Plc. The deal, which was said to worth N3.75 billion ($12.26 million) gave Dufil the ownership of Dangote noodles factories in Ikorodu (Lagos) and Calabar (Cross River State) respectively.
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