Olam is planning to acquire wheat milling and pasta manufacturing assets of BUA Group in Nigeria for 275 million dollars. This transaction is expected to double Olam’s wheat milling capacity and make it a leading pasta producer in Nigeria.
Olam International Limited announced that it has acquired Amber Foods Limited, which through its 100% owned subsidiary Quintessential Foods Nigeria Limited owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria, for a total enterprise value of 275.0 million dollars. The BUA Group, a diversified foods and infrastructure business group in Nigeria, is among the top five wheat millers in the country with wheat milling and pasta manufacturing capacities of 3,760 and 700 metric tons per day respectively.
The assets to be acquired include two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in the North of Nigeria, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt in the Southeast of Nigeria.
The acquisition will strengthen Olam’s position as the number two wheat miller by sales volume and make it a leading pasta player in Nigeria. Olam’s total wheat milling capacity in the country will increase from its current 2,380 TPD to 6,140 TPD once the facilities in Port Harcourt are completed in June 2016. Olam’s total wheat milling capacity in Sub-Saharan Africa will double to reach approximately 7,640 TPD.