UAC of Nigeria Plc has agreed to acquire Chivita|Hollandia (CHI Limited) from The Coca-Cola Company. In a statement filed with the Nigerian Exchange Limited on Wednesday, it was revealed that the transaction is still subject to regulatory approval.
Chivita|Hollandia is a food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks. They are the owners of the Hollandia and Chivita brands.
Commenting on the transaction, the Group Managing Director of 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 Chivita|Hollandia’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.”
The Managing Director of Chivita|Hollandia, 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, expressed confidence in the company’s growth prospects. “We see a bright future for Chivita|Hollandia,” Weber said. “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
On the deal, Fasken Martineau LLP and Templars served as legal advisors to UAC. Citi served as the exclusive financial advisor to The Coca-Cola Company, with McDermott Will & Emery acting as legal advisor.
UAC added that the transaction was a strategic milestone in its growth agenda, expanding its presence in Nigeria’s fast-moving consumer goods sector.
“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 Coca-Cola system recently announced it will invest $1bn 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,” the statement added.
