Companies
Nigerian Breweries completes acquisition of 80% stake in Distel Nigeria Limited
Nigerian Breweries Plc has announced the completion of the acquisition of 80% controlling stake in Distel Wines and Spirit Nigeria Limited as part of efforts to expand its product offerings beyond beer to include wines, spirits and flavoured alcoholic beverages.
The company disclosed this in a notice seen by Nairametrics signed by its Corporate Affairs Director, Sade Morgan.
According to the notice, the acquisition of an 80% stake in Distel Wines and Spirits Nigeria Limited follows approval from the South Africa Reserve Bank for Nigeria Breweries to acquire the shares of the parent company in Distel Nigeria and the import business of the parent company (Distel International) in Nigeria.
The statement reads, “Nigeria’s foremost brewing company, Nigerian Breweries Plc, has officially completed the acquisition of a majority stake (80%) in Distell Wines and Spirits Nigeria Limited (Distell Nigeria).”
“The completion of the transaction follows the approval of the South Africa Reserve Bank (SARB) for the acquisition by Nigerian Breweries Plc, of the shares of the South African entity, Distell International Limited (now known as Heineken Beverages Holdings Limited) in Distell Nigeria, as well as the import business of Distell International Limited in Nigeria.”
The acquisition of Distel Nigeria Limited to Nigerian Breweries portfolio signals the addition of wines, spirits, and other flavored alcoholic beverages to the product offerings of Nigerian Breweries according to its CEO, Hans Essadi.
He stated, “This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands of wines and spirits market segment and capture significant growth opportunities in the wines and spirits segment of the brewing industry. We are excited to have the process completed and can’t wait to see how this transforms our business”.
The Managing Director of Distel Nigeria Limited, Steve Ighorimoto, said the acquisition of the company would improve the marketing, production, and distribution capacity of its products and improve value for all stakeholders.
Backstory
Nairametrics earlier reported the approval by shareholders of Nigerian Breweries of the company’s plan to acquire 80% stake in Distel Nigeria Limited during its Extra-Ordinary General Meeting (EGM) about one month ago.
Before this acquisition, Distell Nigeria was a subsidiary of Distell International Limited, which is wholly owned by Heineken Beverages. Established in 2018 and headquartered in Lagos, Nigeria, Distell International Limited holds an 80% share in Distell Nigeria.
Distell Nigeria operates in two main areas: local production of wines (both still and sparkling) and ciders, and the importation of wines, spirits, and flavored alcoholic beverages from the Distell Group in South Africa. Its brand portfolio includes Amarula, JC Le Roux, Nederburg, Drostdy-Hof, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.
