UAC of Nigeria PLC on Wednesday announced its agreement to acquire Hollandia/Chivita (CHI Limited) from the Coca-Cola Company.
Gatekeepers News reports that the transaction, pending regulatory approval, is seen as a significant step forward in UAC’s growth strategy, further enhancing its footprint in Nigeria’s fast-moving consumer goods sector. The filing was made on the Nigerian Exchange Limited.
“It supports The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale,” the filing on NGX said in part.
“The Coca-Cola system recently announced it will invest $1 billion in Nigeria over five years and remains committed to these investments, provided a predictable and enabling environment is in place.
“This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system.”
Group Managing Director, UAC, Fola Aiyesimoju, said: “As a company with a strong presence in Africa, we are deeply committed to the continent’s growth. We are pleased to announce the acquisition of Chivita/Hollandia (CHI Limited), a leading dairy and juice business in the region.
“This acquisition presents significant potential to build on ChivitaHollandia’s (CHI Limited’s) legacy of excellence and innovation. I would like to thank the management and staff of Chivita/Hollandia (CHI Limited) and look forward to working with the team to support the next phase of growth.”
Managing Director of Chivita/Hollandia (CHI Limited), Eelco Weber, said the business has made significant progress over the past few years, with the Chivita and Hollandia brands becoming clear leaders in their categories.
“I would like to thank our over 5,000 employees for their hard work and dedication in bringing our business forward and earning us recognition as a Gold-rated Great Place to Work,” Weber said.
The management team, including Weber, said they are confident in the company’s growth prospects.
“We see a bright future for Chivita/Hollandia (CHI Limited),” Weber said. “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
Fasken Martineau LLP and Templars served as legal advisors to UAC. Citi served as exclusive financial advisor to The Coca-Cola Company, with McDermott Will & Emery acting as legal advisor.
