Forafric acquires 90% of SIMS, increases capacity

Forafric announced as part of its strategy to double crushing capacity in Morocco over that next two years, that it has acquired 90% of Societe Industrielle de Minoterie du Sud, or SIMS, a soft wheat milling company with primary operations in Marrakesh. 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 eight years. Forafric anticipates that debt service will be covered by future cash flows from operations. The transaction closed on July 26 and has received all regulatory approvals.