Singapore agribusiness giant Olam International has joined forces with Japan’s Sanyo Foods to manufacture and distribute instant noodles in Nigeria.
The US$20m deal, announced today (9 May), will see Sanyo Foods acquire a 25.5% stake in Olam’s instant noodles business in Nigeria. The two companies will set up a joint venture that will manufacture and distribute instant noodles in Nigeria and across sub-Saharan Africa.
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Olam’s instant noodles business, under the Cherie brand, was part of Crown Flour Mills’ wheat milling business, which the company acquired in 2010. Olam says it is now among the top four players in instant noodles in Nigeria with a turnover of $24m in 2012.
Olam said the joint venture will “draw on the strengths” of both partners but will enable it grow the instant noodles business “at a much faster rate” with new products and new flavours.
The company has made a number of acquisitions in Nigeria, including biscuit and confectionery firm Titanium Holding Co. and dairy group Kayass Enterprises.
Sanyo Foods is Japan’s third-largest player in the instant noodles business. It claims to have established a leadership presence in China, Vietnam, Russia and North America through partnership deals.
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