February 21, 2024 (MLN): Fauji Foods Limited (PSX: FFL) has acquired the entire equity stake of Fauji Foundation in Fauji Infraavest Foods Limited and the cereals business of Fauji Foundation operating under the brand name `Fauji Cereals’, the company’s filing on PSX revealed today.
All regulatory and corporate approvals for the aforesaid transactions were obtained before the acquisition after the approval by Fauji Foods Limited’s (FFL) Board of Directors dated November 21, 2023, & Shareholders’ approval dated December 28, 2023.
This move marks the successful creation of a consumer food vertical within the group & is in line with FFL’s ambition of becoming an FMCG powerhouse in Pakistan.
The merger brings together Pakistan’s most iconic brands & is expected to make Fauji Foods Limited one of the most diverse food companies in Pakistan.
This is in line with Fauji Foods Limited’s strategy to own the breakfast table through its much-loved dairy brand “Nurpur” and Pakistan’s largest cereal brand “Fauji Cereals”.
Through the acquisition of Fauji Infraavest Foods Limited, a state-of-the-art Pasta plant is also being added to FFL’s business. This extends the company’s portfolio to multiple culinary occasions.
The transaction is expected to be margin accretive.
