Fauji Foods acquires subsidiaries

­KARACHI: Fauji Foods Limited said on Wednesday it had acquired the entire equity stake of its parent company Fauji Foundation in two subsidiaries, expanding its product portfolio and market reach.

The company said in a filing to the Pakistan Stock Exchange (PSX) that it had bought Fauji Foundation's stake in Fauji Infraavest Foods Limited and Fauji Foundation's cereals business, which sells breakfast cereals under the brand name "Fauji Cereals".

The acquisition, which was approved by Fauji Foods' board and shareholders in November and December last year, respectively, marks the creation of a consumer food vertical within the group and is in line with its ambition of becoming a fast-moving consumer goods (FMCG) powerhouse in Pakistan, the company said.

"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 company's statements said. "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.