Pakistan: Fauji Foods acquires Fauji Infraveast Foods to consolidate cereal, dairy brands

Fauji Foods Limited (FFL), a Pakistani maker of dairy products, has announced the acquisition of the entire equity stake of its parent company Fauji Foundation in Fauji Infraveast Foods Limited and its cereals business under the brand name Fauji Cereals, to expand its product portfolio and market reach.

In a filing with the Pakistan Stock Exchange, Fauji Foods Limited said: “This move marks the successful creation of a consumer food vertical within the group and is in line with FFL’s ambition of becoming an FMCG powerhouse in Pakistan”.

According to sources, the merger is set to unite two well-known Pakistani brands, namely dairy brand Nurpur and Fauji Cereals, the country’s largest breakfast cereal brand. FFL will also be facilitated in its ambition to become a diversified food player by gaining access to a state-of-the-art pasta plant owned by Fauji Infraveast Foods Limited.

The transaction is expected to be margin accretive.

Source: Pakistan Today / Mettis Global