One of Dangote Group of Companies, Dangote Flour Mills, has sold its noodles assets to Dufil Prima Foods, makers of Indomie noodles.
The Group Managing Director, DFM, Thabo Mabo, Tuesday, announced the development. He said the divestment was to focus on core areas of flour and pasta production.
Mabo said the transaction was effected last Monday. He said the deal was a win-win situation for both sides adding that DFM stands to have more market presence through the deal.
Under the terms of sales agreement, the Dangote boss said Dufil Foods will continue to produce and sell noodles under the brand name for two years. Also, he said Dangote had offered Dufil the use of some of its facilities on a temporary basis.
The Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, confirmed the deal and described the acquisition of Dangote Noodles as strategic. He said his company would continue to seek more dominance in the noodles business.
He further stated that most of the former staff members of Dangote Noodles would be employed by Dufil Prima Foods to ensure seamless transition and commencement of production.
- Bola Kougbe