Forafric Global PLC (Nasdaq: AFRI, or “Forafric”), a vertically integrated agribusiness serving Africa, today announced as part of its strategy to double crushing capacity in Morocco over that next two years, that it has acquired 90% of Société Industrielle de Minoterie du Sud (“SIMS”), a soft wheat milling company with primary operations in Marrakesh.
“This acquisition enables us to expand our crushing capacity rapidly by more than 300 tons per day with minimal capital investment,” said Saad Bendidi, Chairman of Forafric. “SIMS has recently been operating at less than 50% capacity due to capital constraints. We are preparing to launch activity during August. Furthermore, this transaction represents a significant milestone towards our stated objective of doubling our crushing capacity over the next two years.”
Forafric is acquiring SIMS in an all-cash transaction that includes the assumption of SIMS’ outstanding debt, which is scheduled to mature in yearly tranches over the next 8 years. Forafric anticipates that debt service will be covered by future cash flows from operations. The transaction closed on July 26th, 2023 and has received all regulatory approvals.
Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is the milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding both in Morocco and in Africa and contributing to growing Africa food security.
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.