Olam Acquires Dangote Flour Mills for $331 Million
Global agribusiness giant Olam has agreed to fully acquire Dangote Flour Mills Plc for US$331 million.
The decision by Olam to pursue the deal was made in support of Olam’s strategy for its Grain and Animal Feed Business, a platform that it has targeted for growth, and to expand its wheat milling capacity in high-growth markets, such as Nigeria.
Under the terms of the deal, which will double Olam installed capacity in the country, includes five strategically located facilities engaged in flour milling and pasta production, and associated logistical capabilities and access to the ports of Apapa and Calabar.
Olam first entered the Nigerian market in 2010 with the acquisition of Crown Flour Mills, and has since grown the footprint of its world class wheat milling franchise across sub-Saharan Africa. Olam expects demand for wheat-based foods such as bakery items, snacks, and pastas to continue to climb in Nigeria, and having control of DFM’s complementary manufacturing operations will give Olam a wider reach across the Nigerian market.