Coca-Cola Company has reached a deal to sell the makers of the popular brands, Chivita and Hollandia, CHI Limited, to UAC of Nigeria Plc for an undisclosed fee six years after taking control of the company.
The deal at the time was done to expand its offering in Nigeria, eyeing its portfolio across value-added dairy products, juices, nectars, still drinks, and snacks.
Now, UAC Nigeria will be looking to take over the plans to see the brand grow further, banking on its 5,000-person strong workforce with nine manufacturing facilities and several logistics and distribution hubs across Nigeria.
According to a statement on Wednesday, the transaction will be completed after a regulatory approval.
The company said the move further supports Coca-Cola’s plans to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale.
This could indicate low scale potential for the Hollandia brand, which is the market leader in evaporated milk and drinking yoghurt, while the Chivita brand is the market leader in fruit juice.
This comes after the Coca-Cola 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, the statement added.
Speaking on the development, Mr Fola Aiyesimoju, Group Managing Director of UAC, 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.”
For Mr Eelco Weber, Managing Director of Chivita|Hollandia (CHI Limited), 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,” Mr Weber said.
“We see a bright future for Chivita and Hollandia,” he said, adding that, “With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
The statement also noted that Citi served as the 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.