The Coca-Cola Company has agreed to sell Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC. The deal is still awaiting regulatory approval, according to a statement submitted to the Nigerian Exchange Limited on Wednesday.
In Nigeria, Chivita|Hollandia is a food and beverage company that offers a variety of value-added dairy products, juices, nectars, still drinks, and snacks. The Hollandia and Chivita brands belong to the Coca-Cola Company.
UAC Group Managing Director Fola Aiyesimoju commented on the deal, saying, “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”
According to Eelco Weber, managing director of Chivita|Hollandia, the company has advanced significantly in recent years, with the Hollandia and Chivita brands emerging as distinct leaders in their respective markets.
He said, “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 and the rest of the management team expressed optimism about the company’s future growth. “We see a bright future for Chivita|Hollandia,” he stated.
“With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
UAC received legal advice on the transaction from Templars and Fasken Martineau LLP. The Coca-Cola Company has Citi as its only financial advisor and McDermott Will & Emery as its legal counsel. The deal, according to UAC, was a key turning point in its expansion plan that increased its footprint in Nigeria’s fast-moving consumer goods industry.
The statement added, “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”
