Oman Flour Mills strengthens M&A strategy in Gulf region

Oman Flour Mills (OFM), a key player in Oman's integrated food industry, is set to significantly expand its reach by engaging in mergers and acquisitions within the food sector across Oman and the Gulf region. With transactions scheduled to complete by mid-next year, this expansion aims to elevate OFM into one of the largest food sector entities in the Middle East. OFM's strategy focuses on enhancing integration across their value chain including diversification into new ventures beyond their typical flour milling, bakery, and feed operations. A pivotal acquisition involves an unnamed industrial bakery, with OFM's subsidiary Atyab Investments advancing with a nonbinding offer post-valuation completion. Legal and Financial Due Diligence for this acquisition is in progress. Additionally, plans are being developed for establishing an industrial bakery in Saudi Arabia with a finalized market assessment and potential investors being prepared. Furthermore, OFM is contemplating a merger with an emerging bakery specializing in frozen goods, with a consultancy undertaking strategic and valuation assessments. Atyab Investments is also eyeing acquisitions of a domestic feed mill and a complete buyout of Oman Bio-Products. OFM Group, backed by Oman Food Investment Holding Company and Oman Investment Authority, reported revenues of RO 96.14 million for the first nine months of 2024, marking an increase compared to the previous year.