The Coca-Cola Company on Wednesday announced that it has entered into an agreement to sell Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC (UAC).
Chivita|Hollandia is a leading food and beverage player in Nigeria, with a portfolio across value-added dairy products, juices, nectars, still drinks, and snacks.
The Hollandia brand is the market leader in evaporated milk and drinking yoghurt, while the Chivita brand is the market leader in fruit juice.
This transaction, which is subject to regulatory approval, further 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 $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.
UAC is a holding company focused on domestic manufacturing, marketing, and distribution of leading consumer brands in Africa. The company operates nine manufacturing facilities and several logistics and distribution hubs across Nigeria, with 5,000 employees.
Group Managing Director of UAC, Fola Aiyesimoju in a statement 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.”
Managing Director of Chivita|Hollandia (CHI Limited), Eelco Weber in a statement also 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 toWork,” Weber said.
The management team, including Weber, 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.”
Citi served as exclusive financial advisor to The Coca-Cola Company, with McDermott Will & Emery acting as legal advisor. Fasken Martineau LLP and Templars Law served as legal advisors to UAC.
Related