BUA Group Sells Flour Business Unit, Olam International, for N54 Billion

BUA Group has announced the divestment of its flour business to Olam International in a deal worth $275 million (about N54.7bn).

Speaking at the signing ceremony over the weekend, industrialist and founder, BUA Group, Abdulsamad Rabiu, said: “This signing marks a major milestone in our medium term strategy. Over the years, we have run one of the largest and most efficient flour milling business in Nigeria and are confident in the value it will add to the buyer’s operations. Our group’s strategic focus will now be to diversify to business areas with greater potential for export where the sourcing and utilisation of foreign exchange is less and most of the materials needed for production can be sourced locally whilst also positioning our current line of foods and infrastructure businesses for market leadership.”
Further speaking on the group’s medium term growth strategy, Alhaji Rabiu who is also the Executive Chairman of BUA, said that expanding the backward integration of its sugar plantations in Kwara and Kogi states is key.

 “Extensive work is on-going in Lafiagi, Kwara State with over 20,000 hectares and we have another 50,000 hectares of farmland in Bassa, Kogi. These two operations form the fulcrum of our backward integration programme for sugar and this will further reduce the country’s dependence on imported raw sugar while supporting the value chain in sugar production within Nigeria.”

In his comments, Olam’s Managing Director/CEO for Grains, K.C. Suresh said the deal will significantly boost Olam’s flour and wheat milling operations in Nigeria to meet consumer needs as well as consolidate its position as a market leader in the foods industry in Nigeria.

He was confident that BUA’s flour milling business offered great value for money.