DUFIL Snaps Up May & Baker’s Food Production Line in N775Million Deal

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Here is the list of Providus Bank Branches in Lagos

A little over two years after it was granted a commercial banking license with regional authorization by the Central...

List of latest Ponzi schemes in Nigeria

These are the latest and past Ponzi scams and shady investment products that Nigerians are putting their monies into. What...

May & Baker Nigeria PLC, a leading player in the Fast Moving Consumer Goods (FMCG) industry, and healthcare space, on Thursday 26th April 2018, sold its food production line, worth some N775 million to DE United Foods Industries Limited (DUFIL), owners of Indomie noodles.

May & Baker’s food production line covers its noodles business under the brand name, Mimee Noodles.

It was a 100 percent acquisition of May and Baker’s food division, and less than 10 percent of its total balance sheet size, according to Sandra Aduba, May and Baker’s head of Communication Department.

“The Noodles industry is a red ocean and a loss contributing unit for us hence the decision to sell. The board and shareholders approved the sale at an EGM held on 23rd Nov. 2017,” Aduba said in an emailed response to questions.

- Advertisement -

Dufil said it embarked on the acquisition “in furtherance of our aim to contribute to the growth of the Nigerian economy, enhance production capacity and focus on non-oil exports to meet the needs of  Economic Community Of West African States(ECOWAS) market and beyond which, will deliver optimum values to all our stakeholders,” the noodles giant said.

May & Baker shares have risen 3.85 percent this year, according to data compiled by BusinessDay and were priced at N2.70 as at the close of trading in Lagos on Monday, with a market capitalization of N2.6 billion.

According to its full-year 2017 financial report, the drug maker reported an 802 percent surge in Profit After tax (PAT) from N41 million in 2016 to N370 million in 2017, signalling an end to a scathing foreign exchange liquidity problem that ravaged the sector in 2016, spurring high operational cost since most of their inputs were mainly imported.

The FMCG firm said the acquisition was completed following receipt of approvals from the respective boards of Directors of DE United and M&B, the respective shareholders of both companies and the Securities and Exchange Commission (SEC).

Read Also:  AB InBev Unveils its Iconic Budweiser Beer into Nigeria Market (Pictures)
- Advertisement -

The Central bank Of Nigeria (CBN)’s decision to restrict specific items from accessing its official window in 2016 placed significant pressure on input costs for FMCGs, as they had to source for Foreign exchange (FX) from the parallel market at higher rates to settle import bills which consequently depressed gross margins.

In response to this, several FMCG companies developed backward integration strategies and effective supply chain management to reduce over-reliance on imports to militate against exchange rate volatility that has hitherto hampered growth

One could have wondered why the drug making firm resolved in selling out some of its asset giving the firm’s 2017 tremendous performance and a great rebound of economic activities.

Aduba disclosed that the divestment from the Noodles business provides much-needed cash for the company, and will also reduce the losses hitherto contributed by this unit by helping management refocus on its new corporate vision which is “to be a leading healthcare brand in Sub-Saharan Africa.”

- Advertisement -

“We are re-focusing on our new vision of being a leading healthcare brand not just in Nigeria but in the SSA region leveraging on our Biovaccines JV with the government”.


“Our new Agreement with National Institute for Pharmaceutical Research and Development (NIPRD) to launch a new sickle cell drug;  launching of our nature care brands and new products portfolio.”

“We are focused on delivering excellent returns for our shareholders and good value for all stakeholders. We will also be coming out to the stock market to raise fresh capital this year to drive our new vision,” Aduba added.

Dufil was incorporated in Nigeria as a private limited liability company on 16 September 1993 and has been involved in the manufacturing, selling, marketing and distributing of instant noodles ( under the indomie brand) since its inception.


SOURCE: BusinessDay Nigeria

- Advertisement -
DUFIL Snaps Up May & Baker’s Food Production Line in N775Million DealDUFIL Snaps Up May & Baker’s Food Production Line in N775Million Deal

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

DUFIL Snaps Up May & Baker’s Food Production Line in N775Million DealDUFIL Snaps Up May & Baker’s Food Production Line in N775Million Deal

Latest News

Vingroup to give 2,400 ventilators to Russia, Ukraine and Singapore

HANOI, VIETNAM - Media OutReach - July 11, 2020 - On July 10, 2020, VinGroup fulfilled its obligations to deliver ventilators...

Nippon Paint Reveals the Winners of the Asia Young Designer Awards 2019/20

Functional and sustainable winning entries of the year celebrated virtually with Nippon Paint SINGAPORE - Media OutReach - 11 July 2020 - Following the 13th instalment of...

COVID-19: Every Nigerian must take Responsibility, says Sanwo-Olu

Lagos State Governor, Mr. Babajide Sanwo-Olu on Saturday charged all Nigerians to take responsibility as the nation joins the global community in the fight...

FGN Bond Yields Moderate for Most Maturities Tracked on Sustained Demand Pressure

In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated further for most maturities tracked amid demand...

FG Signs N10.8trn Budget amid Threats of Revenue Shortfall…

President Muhammadu Buhari on Friday, July 10, 2020, signed the revised N10.8 trillion 2020 national budget into law. A breakdown of the spending plan...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -DUFIL Snaps Up May & Baker’s Food Production Line in N775Million DealDUFIL Snaps Up May & Baker’s Food Production Line in N775Million Deal