In line with its strategy to diversify into high-growth food and beverage categories, Champion Breweries Plc is having talks with Sun Mark International Limited for the acquisition of Bullet, a leading ready-to-drink (RTD) alcoholic and energy brand in the market.
The deal is subject to the receipt of the necessary regulatory approvals, including from the Federal Competition and Consumer Protection Commission (FCCPC).
On the completion of the transaction, Champion Breweries will consolidate the financial performance of Bullet’s assets into its reporting, reflecting both immediate benefits (e.g. FX earnings, distributor leverage) and long-term cost synergies through integrated supply chain, portfolio expansion, operational integration, product development and enhanced market presence.
The beer maker explained in a statement on Wednesday that the acquisition is structured as an asset carve-out, with the assets to be held in a newly incorporated company in the Netherlands.
Post-acquisition, Champion Breweries Plc will hold a majority interest in the new business, while Vinar N.V, a Belgian entity and the majority shareholders of Sun Mark, will hold a minority stake.
Bullet is currently present in over 14 African markets, including Nigeria, Cameroon, Ghana, Ivory Coast, DRC, and Tanzania.
The Bullet Black RTD is currently the leading RTD Brand in Nigeria while the Bullet Blue energy drink ranks amongst the top six brands.