The United Africa Company (UAC) of Nigeria Plc. has announced that it is buying Chivita and Hollandia from The Coca-Cola Company. This marks a big step in UAC’s plan to grow within Nigeria’s fast-moving consumer goods (FMCG) sector.
The announcement was made in a corporate notice sent to the Nigerian Exchange Limited (NGX). However, the deal is still waiting for approval from the proper regulatory bodies.
Coca-Cola explained that this sale fits with its global plan to run a lighter, more flexible business and focus on brands that can grow fast.
“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 company stated.
Coca-Cola also said it remains committed to doing business in Africa. The company plans to invest \$1 billion in Nigeria over the next five years, depending on how stable and supportive the business environment stays.
“This investment underscores the importance of Africa as a long-term growth opportunity for the Coca-Cola system,” the statement added.
Fola Aiyesimoju, the Group Managing Director of UAC, shared his excitement about the deal. He said it opens many doors for growth and building value in the FMCG industry.
“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,” he said.
Aiyesimoju also praised the work CHI Limited has done so far and looked forward to building on their success.
“This acquisition presents significant potential to build on CHI Limited’s legacy of excellence and innovation,” he added, thanking the company’s management and staff for their dedication.
Eelco Weber, the Managing Director of CHI Limited, also commented on the announcement. He said the company has grown steadily over the years and that its brands, Chivita and Hollandia, are now market leaders.
“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.
He also said the team is confident about the future with UAC.
“We see a bright future for Chivita/Hollandia. With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth,” he said.
The legal and financial arrangements for the deal were handled by top advisory firms. UAC’s legal team included Fasken Martineau LLP and Templars. Coca-Cola was advised financially by Citi and legally by McDermott Will & Emery.