The Nigerian food business sector has continued to witness intense consolidation from major players in order to broaden their market share and improve profitability.
This tide in mergers and acquisitions continues to ebb and flow within the FMCG sector with the latest acquisition by DUFIL Prima Foods topping the list of the latest deals in the noodles sector.
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.
However, it is notable that the adoption of pasta and instant noodles in the continent could be one of the most critical dietary changes in several decades, despite being a recent phenomenon. So, in furtherance of its aim to contribute to the growth of the Nigerian economy, enhance its production capacity while focusing on non-oil exports to meet the needs of the ECOWAS market and beyond, which consequently will deliver optimum value to all its stakeholders, leading noodles maker in Nigeria, Dufil Prima Foods Plc, makers of Indomie Instant Noodles, has finally acquired three noodles production lines of May & Baker Nigeria PLC(“M&B”).This 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.
According to the Financial Adviser/Solicitor of Dufil Prima Foods, Nnenna Ejekam, 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 is 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, Mr. 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.
It will be recalled that in November 2017, Dufil Prima Foods 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.