The CEO of Dufil Prima Food Ltd, Mr. Deepak Singhal, in the middle. (Daily Trust)
The take-over of Dangote Noodles assets by new operator has been completed with effective date being Monday, April 17, 2017. The Dangote Flour Mills Limited divested the assets of the company to Dufil Prima Foods, makers of Indomie Noodles.
Information from a former top management employee of Dangote group stated that this exercise is a regular business portfolio review by Dangote Group, where the business viability and financial fundamentals of various companies in the group are assessed.
With this deal, Dangote Flour Mills (DFM) has exited Nigeria’s noodles market.
Group Managing Director, Dangote Flour Mills, Thabo Mabo, remarked that the divestment was part of strategies of focusing on core areas of flour and pasta production where the company has competitive advantage.
“Dangote Flour will now focus on its strengths in flour and pasta and become more profitable by improving in areas of quality, distribution and marketing.”
“This is a win-win situation for Dangote Flour Mills, Dufil Prima Foods and staff of Dangote Noodles,” he stated.
Under the terms of sales agreement, Dufil Prima Foods will continue to produce and sell noodles under the brand name, ‘Dangote Noodles’ for two years before changing the brand name.
The Chief Executive Officer of Dufil Prima Foods, Deepak Singhal, confirmed the deal and described the acquisition of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.
South Africa’s largest food producer, Tiger Brands Limited, divested its holdings inDangote Flour Mills Limited after three unprofitable business operations. Tiger Brands acquire the 65.7% stake in the company in 2012 for $200 million and later sold it back to Dangote Industries Limitedat $1 per share totaling about $46.1m.
This deal will strengthen leadership and market share of Dufil Prima Foods in the Nigeria Noodles market, and increase its products offerings. The company recently added Minimee noodles to its products range.